Business Desk
Apr 15, 2024
In line with the international market, gold price in Pakistan on Monday registered gains hovering near record-high levels as seasonal demand in the wake of wedding season picked up pace coupled with rising geopolitical tensions.
Data shared by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), showed that per tola gold price in Pakistan settled at Rs247,300 per tola (11.66 grams) as it gained Rs800. Meanwhile, the 10 grams gold price in Pakistan rose by Rs686 to settle at Rs212,020.
It should be noted that gold price in Pakistan touched an all-time high of Rs247,600 per tola on April 9 as investors sought protection from fluctuations in currency market.
The precious commodity has emerged as a safe asset during the recent economic crisis and, as a result, people have been aggressively buying it to protect their cash from deflation. Moreover, an increase in the demand for the precious commodity ahead of wedding season triggered an increase in the price.
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In the international market, gold price gained $8 per ounce to settle at $2,371 as traders kept a close eye on developments surrounding the Middle East conflict, prompting safe-haven buying of assets such as bullion.
"Gold remains in vogue as a financial asset given the combination of geopolitical risks and the prospects of Fed interest rate easing in the second half of the year," said Tim Waterer, chief market analyst, KCM Trade.
"In many respects, gold is taking on the appearance of being as 'asset for all occasions' given its ability to rally under varying market dynamics in 2024."
Bullion rose above the $2,400 level in the previous session and has gained over 14% so far this year, fuelled by strong central bank buying, safe-haven inflows amid continued geopolitical risks.
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 kickstarts.
— Additional input from Reuters
