Price of gold soars by Rs5,600 per tola to settle at Rs207,500
The gold price rose by a huge margin on Friday as the demand for the precious commodity increases with the start of the holy month of Ramadan.
According to the data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) soared by Rs5,600 per tola and Rs4,801 per 10 grams to settle at Rs207,500 and Rs177,898.
The precious commodity registered losses in the last few sessions in line with a decline in international prices and appreciation of the Pakistani rupee against the US dollar.
However, the bullion once again glittered on Friday as local markets reopened today after a day off due to a public holiday on account of Pakistan Day.
Gold price moves in line with the rupee-dollar parity as the country meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country.
Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.
The association also mentioned that the price of gold is Rs12,000 per tola “undercost” in Pakistan, as compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global.
In the international market, gold prices extended gains on Friday, boosted by a slide in Treasury yields after the US Federal Reserve signalled an end to its monetary tightening cycle might be on the cards.
The per-ounce price settled at $1,997 after a massive increase of $58.
Moreover, the bullion’s longer-term prospects remain bright given bets for a pause in US interest rate hikes.
Meanwhile, silver prices in the domestic market gained Rs20 per tola and Rs17.15 per 10 grams at Rs2,220 per tola and Rs1,903.29 per 10 grams, respectively.