May 07, 2024
Just a session after breaking free from the monotony of steep loses, gold price in Pakistan once again sloped downwards on Tuesday in the wake of a slight dip observed in yellow metal's cost in the international market.
According to the data provided by All Pakistan Sarafa Gems and Jewellers Association, the price of gold in Pakistan decreased by Rs500 per tola and Rs429 per 10 grams to settle at Rs240,000 and Rs205,761, respectively.
It should be noted that the gold price was on a falling 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.
Per tola gold price in Pakistan has nosedived since it touched an all-time high of Rs252,200 per tola on Saturday (April 20, 2024). Cumulatively, gold shed Rs6,400 per tola during the past week.
The association also mentioned that the price of gold is Rs2,000 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 same manner as that of domestic market, gold price underwent meagre downtick in the international market as per ounce bullion price dipped $5 to settle at $2,317.
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.
