Apr 25, 2024
Gold price extended gains in Pakistan for the second consecutive session on Thursday as rupee devaluation and rising uncertainty regarding geopolitical crisis attracted investors' attention.
According to the data released by All Pakistan Sarafa Gems and Jewellers Association, the price of gold rose by Rs500 per tola and Rs429 per 10 grams to settle at Rs242,500 and Rs207,905, respectively.
Gold price in Pakistan was on a rising spree since last week in the local and international market as investors were taking refuge in the precious metal — considered a safe haven — due to escalation in geopolitical tensions; however, the yellow metal registered losses in last two session amounting to Rs11,300 per tola.
It should be noted that the precious commodity touched an all-time high of Rs252,200 per tola on Saturday (April 20, 2024).
Today’s increase can be attributed to an surge in the gold prices in the international market — where per ounce price rose by $2 to settle at $2,322 as risk premiums over tensions in the Middle East eased, while investors strapped in for US economic data due later in the week that could offer clues to the Federal Reserve's interest rate path.
Bullion prices have fallen over $100 after hitting a record high of $2,431.29 on April 12.
Meanwhile, silver price in the local market remained unchanged at Rs2,650 per tola and Rs2,271.94 per 10 grams, 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.
