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Saturday May 25, 2024

Gold price surges by Rs1,100 per tola in Pakistan

Gold price maintains uptrend for fifth consecutive session in local bullion market

By Business Desk
March 16, 2023
An undated image of gold bars. — AFP/File
An undated image of gold bars. — AFP/File

Gold prices in Pakistan continued to extend gains on Thursday as the per-tola rate rose by over Rs1,000 in line with the international market as rising inflation boosts its appeal.

According to data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) increased by Rs1,100 per tola and Rs943 per 10 grams to settle at Rs203,500 and Rs174,468, respectively.

Cumulatively, the precious commodity has gained Rs6,000 per tola in the five sessions (Saturday-Thursday).

As the other markets slide investors generally find refuge in gold to maintain a low-risk profile.

A likely economic contraction looms over Pakistan amid political and economic uncertainties and a holdup in the revival of the International Monetary Fund’s (IMF) loan.

The association said prices in the local market remained lower by Rs5,000 per tola as compared with the rates in Dubai’s gold market.

In the international market, gold edged higher, helped by a weaker dollar, but prices held below last session's 6-week peak as risk sentiment improved after Credit Suisse, the latest focal point of a potential banking crisis, secured funds. The per-ounce price settled at $1,926 after an increase of $2.

Credit Suisse, which sparked a rout in European banking stocks on fears of its collapse, recovered 28% after saying it would borrow up to $54 billion from the Swiss central bank to shore up liquidity and investor confidence.

Analysts believe gold was enjoying a "knee-jerk rally" with short covering potentially accounting for a large part of the gains, yet sentiment was broadly favourable towards gold.

Meanwhile, silver prices in the domestic market remained unchanged at Rs2,150 per tola and Rs1,843.27 per 10 grams, respectively.