Gold Prices in Pakistan and in other countries are determined by the prices that the London Gold Market Fixing Limited sets. Every day, the gold price standard is set two times and this price is set by the London Gold Market Fixing Ltd. This organization sets the prices by taking into account the supply of gold and the customer demand which are two very basic economics principles. Almost in all countries, these prices are considered as standard and are used to calculate the local gold prices.
Gold Prices in Pakistan are affected by some other factors as well. One of these is the conversion rate of rupee to dollar. Since the international prices of gold are determined in dollars, so a decrease in the conversion rate means that the Gold Prices in Pakistan are going to rise. Here, the supply and demand factor does not play a very critical role in determining the price.
The current scenario regarding the prices is that they seem to be fluctuating between 48,000 and 51,000 for the past few weeks. From the statistics of the past five years, we can see the following graph:
From the graph, we can see that other than periodic downfalls, the prices have been continuously rising from 2010 to 2011. In 2011, there are some very sharp spikes in the graph. By the end of 2013, we can see that the prices hit the record high. After that, the gold prices went down gradually and hit record low level in about 2 years. After that, prices keep pivoting around one point for the next one and half years.
In international market, the gold rates are expected to fall down at first in 2015 and then remain at that level for the rest of the year. This was forecasted by the analysts who contributed to the LBMA annual gold rate forecasting. However, it can’t be said for sure that this trend will be followed exactly because mainly, the prices depend on the circumstances which are pretty unpredictable. However, if everything goes normal, we can expect the rates to roughly follow the trends that have been forecasted.
For the Gold Prices in Pakistan, it depends on our overall economic situation. For the past two years, the prices have been going down which shows that the country’s economy is moving towards stabilization. Since the international market gold rates are also going to move around one point in the coming year according to the LBMA forecasters, therefore we can hope that if our economy also gets better than the gold rates in Pakistan will not rise. We can also hope to see a decline in the gold rates soon in the coming months of the year 2015 in Pakistan.