KARACHI: The mounting political turmoil and uncertainty caused by the PTI’s long march on Islamabad hit gold prices as the precious commodity witnessed a decline Saturday.
The precious metal, however, secured a weekly gain of nearly 4%. All Pakistan Sarafa Gems and Jewellers Association’s (APSGJA) data showed that the price of gold declined by Rs600 per tola and Rs514 per 10 grams to settle at Rs151,800 and Rs130,144, respectively.
Gold is often seen as an alternative investment during times of political and financial uncertainty. Cumulatively, the precious commodity has gained Rs5,400, or 3.69%, per tola during the week ended October 29.
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's long march entered day two of its second march towards Islamabad today under the leadership of former prime minister Imran Khan after he was ousted via a no-confidence motion earlier this year.
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 $7 per ounce settling at $1,644 as the dollar and bond yields climbed after data showed underlying inflation pressures remained high, cementing expectations around another hefty rate hike from the US Federal Reserve next week.
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.
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