Jul 04, 2024
Gold price in Pakistan extended gains on Thursday, as the precious commodity recorded an increase of Rs1,000 per tola and Rs857 per 10 grams.
The price of yellow metal closed the day by settling at Rs243,300 per tola and Rs208,590 per 10 grams.
Despite only a few days remaining until Muharram, local dealers told Gadinsider that demand has increased due to the wedding season commencing immediately after Muharram and Safar.
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 also remained unchanged at Rs2,850 per tola and Rs2,443.41 per 10 grams.
In the international market, gold prices rose more than 1% to a near two-week high, driven by increased bets for a September interest rate cut by the Federal Reserve after recent US data suggested that the labor market was softening.
Spot gold was up 1.2% at $2,357.06 per ounce by 02:08 a.m. ET (1808 GMT). U.S. gold futures settled 1.5% higher to $2369.40.
Following the US data, the dollar slipped to a two-week low, making gold more attractive for other currency holders, while the yield on the benchmark US 10-year Treasury note slid.
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.
