Business Desk 
Jul 11, 2024
An undated image of gold bars. — Pixabay
Despite low consumer demand owing to Muharram — the first month of the new Islamic year — the gold price in Pakistan registered a substantial uptick for the second consecutive session on Thursday.
According to the data released by All Sindh Sarafa and Jewellers Association (ASSJA), the price of gold increased by Rs1,200 per tola and Rs1,029 per 10 grams to settle at Rs246,800 and Rs211,591.
It should be noted that every year during the month of Muharram, the demand for bullion decreases in the local market.
The association reported that the price of gold has been “under cost” by Rs2,500 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 remained unchanged at Rs2,900 per tola and Rs2,486.28 per 10 grams, respectively.
In the international market, gold prices eked out gains despite a stronger dollar and higher bond yields, as investors looked forward to the US June inflation data due later this week for more clarity on the US interest rate path.
If markets are shown evidence of still-stubborn US inflation, that may prompt the precious metal to unwind more of its recent gains, said Han Tan, chief market analyst at Exinity Group.
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.
