Monday April 22, 2024

Gold extends gains, price settles at Rs161,600 per tola

Silver prices in domestic market rise by Rs30 per tola to settle at Rs1,710

By Business Desk
November 29, 2022
An undated image of a woman looking at gold bangles at a jewellery store. — AFP/File
An undated image of a woman looking at gold bangles at a jewellery store. — AFP/File

KARACHI: Gold price in Pakistan gained Rs300 per tola on Tuesday as stable currency yellow metal's appeal in the market.

The price of per tola gold settled at Rs161,600, while after an increase of Rs258 per 10 grams the rate settled at Rs138,546, respectively, data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.

While the slightly weaker rupee is supporting gold at the moment, interest rate hikes weighed on gold prices which restricted the gains.

The yellow metal is considered a hedge against higher inflation and a safe store of value in times of economic and political uncertainty.

However, higher interest rates increase the opportunity cost of holding the non-yielding metal which restricted the gains today.

Gold price in the local market is heading towards its all-time high of Rs162,500 per tola recorded on July 28.

In the international market, the price of the yellow metal declined by $3 per ounce settling at $1,756 following hawkish comments from Fed officials James Bullard and John Williams.

The precious commodity's rates in Pakistan are around Rs2,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market rose by Rs30 per tola and Rs25.72 per 10 grams to settle at Rs1,710 and Rs1,491.76, respectively.