Gold price in Pakistan continued its dazzling streak Friday tracking the international precious metal markets where the precious commodity touched highest level in over a month following key US jobs data that showed the labour market was softening, lifting expectations around a Federal Reserve interest rate cut in September.
According to data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) surged by Rs2,000 per tola and Rs1,740 per 10 grams to settle at Rs246,400 and Rs211,247, respectively.
The association reported that the price of gold has been “under cost” by Rs3,500 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 gained Rs50 per tola and Rs42.87 per 10 grams to settle at Rs2,900 and Rs2,486.28, respectively.
In the international market, spot gold was up 1.3% at $2,385.63 per ounce. Bullion is up more than 2% for the week so far.
"Gold is trading at one-month highs as lower payroll revisions and yet another uptick in the unemployment rate help 'cement' a September rate cut," said Tai Wong, a New York-based independent metals trader.
"Bulls are eyeing a return to $2,450 all-time highs if the Fed starts openly hinting at September," he added.
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.