May 03, 2024
In line with the persistent trend since last five session, gold price in Pakistan once again registered losses on Friday as he price fell over Rs1,000 per tola.
The data released by All Pakistan Sarafa Gems and Jewellers Association showed that the price of gold decreased by Rs1,400 per tola and Rs1,201 per 10 grams to settle at Rs239,600 and Rs205,418, respectively.
It should be noted that the gold price was on a rising spree 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, negative cues snapped the winning streak and forced the market to register losses.
Gold price in Pakistan has shed Rs12,600 per tola since it touched an all-time high of Rs252,200 per tola on Saturday (April 20, 2024).
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.
Today’s decrease can also be attributed to a decline in the gold prices in the international market — where per ounce price fell by $11 to settle at $2,297.
Bullion price in the international market touched a record high of $2,431.29 on April 12.
Meanwhile, silver price in the local market remained unchanged at Rs2,620 per tola and Rs2,246.22 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.
