Jul 03, 2024
Gold price in Pakistan regained its shine on Wednesday as the rate rose over Rs500 in the local bullion market owing to a steep decline in the rupee value against the US dollar.
According to All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) rose by Rs800 per tola and Rs686 per 10 grams to settle at Rs242,300 and Rs207,733, respectively.
Cumulatively, the yellow metal had gained Rs200 per tola in the local market during the week that ended on June 30.
The association reported that the price of gold has been “under cost” by Rs3,000 per tola in Pakistan, as compared to prices in Dubai. This means that, at present, the Pakistani gold market is less expensive than the world market.
In the international market, gold prices strengthened as the dollar eased after dovish comments from Federal Reserve Chair Jerome Powell, with investors now turning to minutes from the US central bank's latest policy meeting to gauge future interest rate cuts.
Spot gold rose 0.7% to $2,344.60 per ounce by 0846 GMT. U.S. gold futures gained 0.9% to $2,354.20.
"Today's price gains are related to the softening of the U.S. dollar that came after the chairman of the Fed acknowledged in public that inflation in the U.S. is finally starting to move in the right direction," Ricardo Evangelista, senior analyst at ActivTrades told Reuters.
Silver prices in Pakistan also 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.
