Gold rate in Pakistan today: Bullion market opens after three days with Rs1,100 loss

Gold price in Pakistan settles at Rs245,500 per tola
An undated image of gold jewellery. — Freepik
An undated image of gold jewellery. — Freepik

Gold price in Pakistan on Saturday declined by Rs1,100 per tola — snapping it’s three-session record-breaking streak — as the market reopened after Eid-ul-Fitr holidays.

With the latest decline of Rs1,100 in its value, gold rate has settled at Rs245,500 per tola (11.66 grams) in Pakistan today. Meanwhile, data shared by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the 10 grams gold price in Pakistan declined by Rs943 to settle at Rs211,334.

Gold 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.

In the international market, gold prices declined by $943 per ounce on Saturday. Meanwhile, data shared by the association also showed that the price of silver per tola and per 10 grams remained unchanged at Rs2,650 and Rs2,271.94, 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.

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.