May 09, 2024
A representational image. — Freepik
Gold price in Pakistan in Thursday witnessed no fluctuations in its value owing to the waning wedding season in the country as well as the stability observed in the cost of yellow metal in the international market.
The price of gold (24 carats) in Pakistan remains stable at Rs239,200 per tola and Rs205,075 per 10 grams without registering any changes, as per the data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).
It should be noted that the gold price was on a falling spree 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, negative cues snapped the winning streak and forced the market to register losses.
Per tola gold price in Pakistan has nosedived since it touched an all-time high of Rs252,200 per tola on Saturday (April 20, 2024). Cumulatively, gold shed Rs6,400 per tola during the past week.
The association also mentioned that the price of gold is Rs2,000 per tola “undercost” in Pakistan, as compared to international market, showing that the Pakistani gold market was currently cheaper than the global.
Gold — which is considered a hedge against inflation — registered losses in the local market after a stronger-than-expected inflation data — which fell to its lowest level since May 2022 — softened expectations of a rate cut. Moreover, steady monetary policy sapped investors’ spirit.
Similarly, gold price saw no changes in the international market with the per ounce bullion price settling at $2,312.
Bullion price in the international market touched a record high of $2,431.29 on April 12.
Meanwhile, silver price in the local market remained unchanged at Rs2,620 per tola and Rs2,246.22 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.
