Gold rate in Pakistan today: Per tola bullion price plunges by Rs900

Per tola bullion price in Pakistan's local market has observed a hike of over Rs5,000 this week so far
An undated image of gold bangles. — Pixabay

An undated image of gold bangles. — Pixabay

After observing back to back substantial gains during the ongoing week, gold price in Pakistan observed a meagre dip on Friday, aligning with the cost of the yellow metal in the international market and rupee-dollar fluctuations.

As per the data shared by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), per tola gold rate in Pakistan (24 carats) plunged by Rs900 to settle at Rs240,200, while the 10 grams gold price in Pakistan dropped by Rs772 to settle at Rs205,932.

What prompted a drop in gold prices in Pakistan's local market is the rate of yellow metal in the international market, which receded by $5 per ounce to settle at $2,306. Conversely, data provided by the association also revealed that the price of silver per tola and per 10 grams remained unchanged at Rs2,650 and Rs2,271.94, respectively. 

It's noteworthy that per tola bullion price in the domestic market has observed a hike of over Rs5,000 this week so far. 

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.