Gold rate in Pakistan today: Bullion price extends losses

Per tola gold rate in Pakistan (24 carats) dropped by Rs600 to settle at Rs226,900
An undated image of gold. — Freepik

An undated image of gold. — Freepik

Gold prices in Pakistan on Monday underwent a considerable plunge for the second consecutive session, coming at par with the dip observed in yellow metal's cost in the international market.

As per the data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), per tola gold rate in Pakistan (24 carats) declined by Rs600 to settle at Rs226,900; while the 10 grams gold price in Pakistan fell by Rs515 to settle at Rs194,530.

The gold prices in the international market fell by $20 per ounce to settle at $2,580, as the precious commodity remained under pressure after a hot US inflation report dimmed prospects of the Federal Reserve cutting interest rates soon.

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Surprisingly, breaking free from the prolonged hiatus in its value, the price of silver also contracted per tola by Rs20 to settle at Rs2,580, while decreasing Rs17.15 per 10 grams to settle at Rs2,211.93.

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.