Business Desk
Mar 16, 2024
Gold prices in Pakistan finished lower on Saturday to retreat a slight gain registered a day earlier, as it lost respite from the expectations of a rate hike in the upcoming monetary policy announcement scheduled next week.
The data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the per tola gold rate in Pakistan (24 carats) declined by Rs1,050 to settle at Rs227,500; while the 10 grams gold price in Pakistan declined by Rs900 to settle at Rs195,045.
Cumulatively, the precious commodity lost Rs2,700 per tola in Pakistan during the week ended March 16, 2024.
In the international market, gold price lost $13 per ounce to settle at $2,175 per ounce as they looked set to log their first weekly drop in four as investors lowered expectations of a US interest rate cut after data over the week showed bubbling price pressures.
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It should be noted that 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.
Local dealers believe that the return of inflationary days in Pakistan and worldwide has once again invited investors’ attention towards the yellow metal as safer commodities become attractive at such a time.
On the physical side, demand for gold in Pakistan recently picked up pace as some consumers bought into a retreat in domestic prices as the wedding season will kick off immediately after Ramadan.
Data shared by the association showed the price of silver per tola remained unchanged at Rs2,600 and per 10 grams settled at Rs2,229.72.
It also mentioned that the price of the bullion is made plus a $20 premium in international gold rate.
