Gold continues to glitter, price soars above Rs150,000-threshold

KARACHI: Gold surpassed the crucial Rs150,000 threshold in Pakistan on Wednesday with a rise of 1.2% as political uncertainty diverted investors' attention towards safe-haven assets.

Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of the precious metal rose by Rs1,800 per tola and Rs1,542 per 10 grams to settle at Rs150,200 and Rs128,772.

Gold is often seen as an alternative investment during times of political and financial uncertainty. Cumulatively, the precious commodity has gained Rs3,800 per tola during the last two sessions.

The price for local markets is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets.

In the international market, the price of the yellow metal surged by $24 per ounce settling at $1,668 as the dollar and bond yields weakened amid expectations that the US Federal Reserve could slow its rapid pace of interest rate hikes.

Gold is sensitive to rising interest rates, which increase the opportunity cost of holding bullion that does not pay interest.

The precious commodity's rates in Pakistan are around Rs1,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,580 per tola and Rs1,354.60 per 10 grams.