Gold closes week on positive note in Pakistan

Gold price in Pakistan gains Rs3,000, or 1.2%, during the week ended July 13
A participant shows gold bars during the 21st edition of the international gold and jewellery exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. — AFP
A participant shows gold bars during the 21st edition of the international gold and jewellery exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. — AFP

Gold prices rose on Saturday, helped by a pullback in the rupee, while investors looked forward to macros that could influence the State Bank of Pakistan’s monetary policy path.

The data released by All Sindh Sarafa and Jewellers Association (ASSJA), the price of gold increased by Rs400 per tola and Rs343 per 10 grams to settle at Rs249,400 and Rs213,820.

Cumulatively, gold price in Pakistan gained Rs3,000, or 1.2%, during the week ended July 13, 2024.

The association reported that the price of gold has been “under cost” by Rs3,000 per tola in Pakistan, as compared to prices in Dubai. This means that, at present, the Pakistani gold market is less expensive than the world market.

Silver prices in Pakistan remained unchanged at Rs2,900 per tola and Rs2,486.28 per 10 grams, respectively.

How is gold price determined in Pakistan?

Gold price in Pakistan is announced by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), which determines gold prices in Pakistan for local markets six days a week from Monday to Saturday.

Pakistan is a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the precious metal locally.

Accordingly, the gold rate in Pakistan is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets. The latest price for local markets was determined to keep in view the prices at which trade took place among buyers and sellers.