Business Desk 
Jul 25, 2024
Gold prices in Pakistan were confined to a small range in seasonally-quieter trading on Thursday due to a fluctuation in Pakistani currency, international market trends, and uncertainty regarding monetary policy announcement — due on Monday (July 29).
Gold rate in Pakistan declined by Rs2,300 per tola and Rs1,972 per 10 grams — the exact same gains recorded a day earlier — to settle at Rs250,500 per tola and Rs214,763 per 10 grams, respectively.
Gold price touched an all-time high of Rs254,000 per tola in the local market on July 18 as international investors opted for heavy positions in anticipation of the US central bank cutting interest rates in September 2024. However, gold rate in Pakistan is range-bound.
All Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported that the price of gold has been “under cost” by Rs1,000 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 declined by Rs60 per tola and Rs51.44 per 10 grams to settle at Rs2,860 per tola and Rs2,451.98 per 10 grams, respectively.
In the international market, gold prices fell 1% on Thursday as investors booked profits ahead of US economic data that could offer more cues on when the central bank will cut interest rates this year and by how much.
Spot gold fell 1% to $2,372.74 per ounce by 0725 GMT. US gold futures dropped 2.1% to $2,366.00.
"When you look from a fundamental perspective, there are no factors pressuring gold. So, it looks like we are seeing some profit-taking and from a technical perspective, prices could move lower," said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.
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.
