KARACHI: Gold price in Pakistan extended gains from last week as the continuous depreciation of rupee against the US dollar boosted the appeal of the safe-haven asset.
Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold rose by Rs400 per tola and Rs343 per 10 grams to settle at Rs158,500 and Rs135,888, respectively.
The value of the US dollar touched Rs231 in the open market on Monday with the rupee falling Rs1.5 compared to Friday’s exchange rate — which boosted demand for the yellow metal as gold is considered a hedge against higher inflation and a safe store of value in times of uncertainty.
Cumulatively, during the week ended November 19, the safe haven asset gained Rs2,200 per tola.
Pakistan remains a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the commodity locally.
Accordingly, the gold 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 $11 per ounce settling at $1,740.
The precious commodity's rates in Pakistan are around Rs1,500 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,690 per tola and Rs1,448.90 per 10 grams.
Gold price settles at Rs159,600 per tola and Rs136,831 per 10 grams, respectively
Rupee down Rs0.02 or 0.01% to close at 223.94 in the interbank market
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With the current foreign exchange reserves position, Pakistan has an import cover of 1.6 months
Dollar demand continues unabated, besides, greenback supply remains short of demand