Gold rate in Pakistan today: Bullion price continue to increase in Pakistan for 7th consecutive session

Gold hit an all-time high of $2,174 per ounce in the international market
An undated image of gold jewellery displayed at a store. — Pixabay
An undated image of gold jewellery displayed at a store. — Pixabay

Gold price in Pakistan maintained its winning streak as the prices increased for the seventh consecutive session on Thursday in line with the positive trend in the international market.

According to the data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the per tola gold rate in Pakistan (24 carats) rose by Rs2,750 to settle at Rs228,150; while the 10 grams gold price in Pakistan rose by Rs2,358 to settle at Rs195,602.

In the international market, the price of the yellow metal hit an all-time high as the precious commodity gained $26 per ounce settling at $2,174 after comments from Federal Reserve Chair Jerome Powell fostered expectations for lower US interest rates this year

Gold tends to rise when interest rates are low, which reduces the opportunity cost of holding non-yielding bullion.

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 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.