Tuesday April 16, 2024

Gold uptrend continues as rupee sees no major change

It is the second day the precious metal has gained

By Business Desk
April 18, 2023
People buy gold jewellery at a store in Amritsar, India on October 22, 2022. — AFP/File
People buy gold jewellery at a store in Amritsar, India on October 22, 2022. — AFP/File

As the rupee continued to see no major changes, gold prices gained for the second straight day on Tuesday.

The price of gold (24 carats) increased by Rs300 per tola and Rs257 per 10 grams to reach Rs217,400 and Rs186,385, respectively, data from the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.

Meanwhile, gold lost $3 to settle at $2,005 per ounce in the international market.

The yellow metal had reached a record high of Rs218,600 per tola last week. It then dropped to Rs216,000 per tola on April 15 as its rate declined in the international market. It has continued to rise again since then.

The increase in the precious metal's value in the domestic market has been in line with developments in the international market as well as the prevailing economic crisis and rupee depreciation.

The rupee had fallen to an all-time low of Rs288.43 against the US dollar in the interbank market on April 11. While it has recovered since then, the US dollar continues to trade above Rs280.

On Tuesday, the rupee closed at Rs283.9 per dollar after appreciating by Re0.81 or 0.29%.

People tend to buy gold during economic turmoil as it is considered a reliable asset, and a hedge against inflation and the rupee's decline in value. Its prices also rise in Ramadan due to seasonal demand. According to a report by Topline Securities, gold outperformed all other assets in 2022.

The association also mentioned that the price of gold is Rs5,000 per tola "undercost" in Pakistan, as compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global.

Meanwhile, the price of silver in the domestic market remained unchanged at Rs2,530 per tola and Rs2,170 per 10 grams.