Apr 24, 2024
Gold price in Pakistan crept higher on Wednesday but were stuck in a narrow range as investors looked for further direction in the wake of ongoing geopolitical tensions.
The data released by All Pakistan Sarafa Gems and Jewellers Association showed that the price of gold rose by Rs1,100 per tola and Rs943 per 10 grams to settle at Rs242,000 and Rs207,476, 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 $11 to settle at $2,320 as investors looked to US economic data for further clarity on the Federal Reserve's interest rate path.
"A false break of $2,300 on Tuesday likely means that gold prices will remain rangebound heading into U.S. inflation data and the BOJ meeting... I expect gold to tread water between $2,300 and $2,350 unless a fresh catalyst arrives," City Index senior analyst Matt Simpson said.
Bullion prices hit an all-time high of $2,431.29 on April 12, rising nearly $400 from the start of March.
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.
