Sunday May 26, 2024

Gold price rises in Pakistan

Price of precious metal moves up by Rs3,500 per total to settle at Rs205,000

By Business Desk
February 01, 2023
An undated photograph of gold bullions. — AFP/File
An undated photograph of gold bullions. — AFP/File

Gold price in Pakistan has surged after the economic crisis-hit country witnessed record-high inflation in January.

Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) increased by Rs3,500 per tola and Rs3,000 per 10 grams to settle at Rs205,000 and Rs175,754, respectively.

On Tuesday, gold price registered its highest single-day drop as the rupee slightly recovered against the US dollar and investors also kept a close watch on the US Federal Reserve's interest rate hike decision and policy outlook.

The surge in the gold rate comes as the demand increased after the investors moved towards the yellow metal as Pakistan’s headline inflation accelerated to a record high level in January amid food supply constraints and a significant surge in the price of petroleum products.

Consumer prices rose 27.6% compared to 13% in the same month of last year, according to data released by the Pakistan Bureau of Statistics (PBS) on Wednesday. This is the highest year-on-year inflation after May 1975 when the median rate clocked in at 27.77%.

Investors were, however, purchasing only gold bars, not jewellery, which had not only reduced goldsmiths' profit margins but the labour force was also at the stake of losing jobs, as jewellery makers were moving towards other professions in absence of work.

International gold prices ticked lower today as investors kept to the sidelines ahead of the US Federal Reserve’s policy decision on its interest rate path due later in the day.

Spot gold increased $27 to $1,929 per ounce as of 0929 GMT, after falling to its lowest since January 19 in the previous session. US gold futures fell 0.3% to $1,939.70.

Meanwhile, silver prices in the domestic market remained stable and settled at Rs2,250 per tola and Rs1,929 per 10 grams, respectively.