Business Desk
Mar 09, 2024
Gold price in Pakistan finished higher on Saturday in line with the persistent trend during the week as it gained from the expectations of a rate hike in the upcoming monetary policy announcement scheduled next week.
The data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the per tola gold rate in Pakistan (24 carats) jumped by Rs1,600 to settle at Rs230,200; while the 10 grams gold price in Pakistan rose by Rs1,372 to settle at Rs197,360.
During the week ended March 9, the price of gold recorded an overall gain of Rs9,900; moreover, the precious commodity has maintained an upward streak since the last nine sessions and has gained Rs15,400.
In the international market, gold prices surged to another record high as data showing a rise in the US unemployment rate boosted expectations that the US Federal Reserve could begin cutting interest rates soon. The price of the yellow metal gained $18 per ounce settling at $2,198.
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 around the world has once again invited investors’ attention towards the yellow metal as at such a time, safer commodities become attractive.
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.
Data shared by the association showed the price of silver per tola remained unchanged at Rs2,600 and per 10 grams settled at Rs2,229.72.
It also mentioned that the price of the bullion is made plus a $20 premium in international gold rate.
