Thursday February 29, 2024

Gold rate moves up in Pakistan on rupee-dollar parity

Gold increases by Rs500 per tola to settle at Rs233,600

May 18, 2023
An undated image of a gold necklace displayed at a gold store. — AFP/File
An undated image of a gold necklace displayed at a gold store. — AFP/File

Gold rate increased meagerly in the country after the gap between the rupee rates against the dollar in the interbank and the open market widened as the economy remains under duress.

Data released by All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed the rate of gold (24 carats) increased by Rs500 per tola and Rs428 per 10 grams to settle at Rs233,600 and Rs200,274, respectively.

In the interbank, the rupee closed at 285, while the open market rate clocked in at 299, and was above 300 a day earlier, which led to jitters in the market about the currency's stability.

But in the international market, the price of gold slipped as signs that a deal to raise the US debt ceiling could be reached in Washington reduced its safe-haven appeal. The gold rate fell $12 to $1,976 per ounce.

The gold market has remained volatile in Pakistan recently due to several factors — economic and political turmoil, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge.

The safe-haven bullion had reached an all-time high of Rs240,000 per tola on May 10 following increased political uncertainty after Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan's arrest. It dropped later in line with the decline in the international rate.

The jewellers' body also said that local gold was "overcost" by Rs4,500 per tola in Pakistan compared to the Dubai bullion market. This means that, at present, the Pakistani gold market is more expensive than the world market.

Data shared by the association showed the price of silver dropped Rs50 per tola and Rs42.86 per 10 grams to settle at Rs2,900 and Rs2,486.28, respectively.