Business Desk
Jun 01, 2024
Gold price in Pakistan registered a major drop on Saturday after the yellow metal witnessed a significant reduction in its rate in the international market.
The price of gold in Pakistan declined by Rs1,400 per tola and Rs1200 per 10 grams to settle at Rs240,300 and Rs206,019, respectively, as per the data provided by All Pakistan Sarafa Gems and Jewellers Association.
Per tola gold price in Pakistan touched an all-time high of Rs252,200 per tola on Saturday (April 20, 2024). Cumulatively, gold gained Rs5,500 per tola during the week ending May 11, 2024.
The association also mentioned that the price of gold is Rs3,000 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.
In the similar manner as that of Pakistan's domestic market, gold price lost $16 per ounce in the international market to settle at $2,326.
Bullion price in the international market touched a record high of $2,431.29 on April 12.
Meanwhile, silver prices in the local market also registered a decline of Rs80 per tola and Rs68.58 per grams to settle at Rs2,820 per tola and Rs2,417.70 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.
