Jun 26, 2024
Hinting at a trend retaining its steady downward pace, gold price in Pakistan on Wednesday registered losses for the second consecutive session during the ongoing week, owing to a drop seen in yellow metal's cost in the international market.
According to the data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) in Pakistan decreased by Rs900 per tola and Rs771 per 10 grams to settle at Rs240,600 per tola and Rs206,276 per 10 grams.
Per tola gold price in Pakistan touched an all-time high of Rs252,200 per tola on Saturday (April 20, 2024).
The association also mentioned that the price of gold is Rs1,500 per tola “undercost” in Pakistan, as compared to the international market, showing that the Pakistani gold market is currently cheaper than the global.
Gold — which is considered a hedge against inflation — registered losses in the local market after stronger-than-expected inflation data — which fell to its lowest level since May 2022 — softened expectations of a rate cut.
Similarly, gold rates decreased by $13 in the international market, settling at $2,313. Bullion price in the global market touched a record high of $2,431.29 on April 12.
Meanwhile, silver prices remained unchanged at Rs2850 per tola and Rs2,443.41 per 10 grams.
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, majorly owing to the annual budget announced by the federal government almost two weeks ago. People prefer to buy this precious commodity in such times as a safe investment and a hedge.
