Sunday April 21, 2024

Gold soars to Rs151,000 per tola amid political unrest

Price of precious metal rose by Rs800 per tola and Rs686 per 10 grams to settle at Rs151,000 and Rs129,458

By Web Desk
October 27, 2022
Gold bars. — AFP/file
Gold bars. — AFP/file 

KARACHI: Gold maintained its winning streak in the local market for the third consecutive day on Tuesday as political turmoil gripped the county since PTI Chairman Imran Khan announced to march towards Islamabad.

The price of the precious metal rose by Rs800 per tola and Rs686 per 10 grams to settle at Rs151,000 and Rs129,458, data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.

Gold is often seen as an alternative investment during times of political and financial uncertainty. Cumulatively, the precious commodity has gained Rs4,600 per tola during the last four sessions.

Analysts continue to see safe-haven demand (for gold) because the uncertainty over how the political developments are going to play out is extremely high.

PTI is expected to hold a long march from Friday as its move to pressure the coalition government over its demand for snap polls.

Mounting fears over the economic toll from the long march, exacerbated by the depreciating rupee have put safe-haven bullion on track.

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 declined by $5 per ounce settling at $1,663 as the dollar advanced, offsetting support from expectations that the US Federal Reserve might slow its rate hike pace after November.

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.