Gold price rises by Rs200 per tola in Pakistan

Following a major decline posted a day earlier, gold prices in Pakistan were little changed on Saturday as market participants awaited economic data for further direction. 

The price of gold registered a slight increase of Rs200 per tola and Rs172 per 10 grams to settle at Rs177,500 and Rs152,178, according to data released by All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

A day earlier, gold recorded its first major drop of Rs3,350 per tola to Rs177,300 in Pakistan, breaking a 12-day-long streak of crazy gains almost every day.

During the week ended December 24, cumulative, the price of yellow metal gained Rs4,800, or 2.77%, per tola.

Pakistan has seen days recently when the bullion recorded a reduction in its price in international markets, but local pricing bodies kept ballooning the commodity price in the country amid high demand and low supply scenario for the metal.

It should be noted that the APSGJA notifies the gold rates to the market every day after determining the price by keeping in view its rates in world markets, the rupee-dollar exchange rate, and demand and supply in domestic markets.

Gold prices have been rising for the last many days and have cumulatively gained Rs16,300 or 10% per tola since December 1, raising concerns about whether the soaring price is sustainable or constitutes an unsustainable bubble.

Analysts believe that the unavailability of the dollar in Pakistan and the widening difference between interbank and open market exchange rates triggered the recent price hike; however, grey markets of the precious commodity have also added fuel to the speculations.

Meanwhile, silver prices plunged by Rs80 per tola and Rs68.59 per 10 grams to settle at Rs2,020 per tola and Rs1,731.82 per 10 grams, respectively.

In the international market, gold prices hemmed into a tight range in thin trading, as cautious traders awaited economic data due later in the day to gauge the Federal Reserve’s rate hike stance. Prices settled at $1,798 after a meagre rise of $1 per ounce.