Gold rate in Pakistan today: Bullion snaps record-breaking rally, undergoes correction

Per tola silver price in Pakistan remained unchanged at Rs2,780
A representational image. — Freepik
A representational image. — Freepik

Gold price dropped to Rs250,200 per tola (11.66 grams) on Thursday in line with the global trend where profit-taking could push the metal further this week.

The price of gold declined by Rs1,700 per tola and Rs1,458 per 10 grams to settle at Rs250,200 and Rs214,506, respectively, the data released by All Pakistan Sarafa Gems and Jewellers Association showed.

Gold price in Pakistan touched an all-time high of Rs251,900 per tola a day earlier as global tensions coupled with rupee depreciation against the US dollar fueled bullion rally.

Following a decrease of $17 per ounce, gold price in the international market settled at $2,395 as US interest rates remaining higher for a longer may added some pressure to the boost for gold.

Higher interest rates reduce the appeal 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.

Meanwhile, silver price in the local market remained unchanged at Rs2,780 per tola and Rs2,383.40 per 10 grams.

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.