May 02, 2024
Gold rates in Pakistan maintained its losing streak as the prices decreased for the fourth consecutive session on Thursday due to negative trend in the international market.
According to the data released by All Pakistan Sarafa Gems and Jewellers Association, the price of gold decreased by Rs900 per tola and Rs771 per 10 grams to settle at Rs241,000 and Rs206,619, respectively.
It should be noted that the gold price was on a rising spree last week in the local and international market as investors were taking refuge in the precious metal — considered a safe haven — due to escalation in geopolitical tensions; however, negative cues snapped the winning streak and forced the market to register losses.
The precious commodity touched an all-time high of Rs252,200 per tola on Saturday (April 20, 2024).
Gold — which is considered a hedge against inflation — registered losses in the local market after a stronger-than-expected inflation data — which fell to its lowest level since May 2022 — softened expectations of a rate cut. Moreover, steady monetary policy sapped investors’ spirit.
Today’s decrease can also be attributed to a decline in the gold prices in the international market — where per ounce price fell by $8 to settle at $2,308.
Bullion price in the international market touched a record high of $2,431.29 on April 12.
Meanwhile, silver price in the local market remained fell by Rs10 per tola and Rs8.58 per 10 grams to settle at Rs2,620 and Rs2,246.22, respectively.
Gold price in Pakistan is announced by the association, 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.
Gold price in Pakistan has been volatile in Pakistan recently amid continued political and economic uncertainty and high inflation. People prefer to buy this precious commodity in such times as a safe investment and a hedge.
