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Monday May 27, 2024

Gold rate rises to Rs235,300 per tola

Rate of gold increases by Rs2,700 per tola

By Business Desk
May 20, 2023
Gold bangles are displayed at a jewellery store in this undated file photo. — AFP
Gold bangles are displayed at a jewellery store in this undated file photo. — AFP

As the yellow metal gained in the international market, gold price once again rose in Pakistan Saturday.

The rate of gold (24 carats) rose by Rs2,700 per tola and Rs2,315 per 10 grams to reach Rs235,300 and Rs201,732, respectively, data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.

The international rate increased by $13 to settle at $1,977 per ounce.

The yellow metal's price has fluctuated in both the international and domestic markets this week as investors awaited clarity on whether the US debt ceiling would be raised.

If the US debt limit, which is currently capped at $31.4 trillion, is not raised, it could trigger the first-ever US default.

Cumulatively, gold only gained Rs200 per tola this week in Pakistan.

The domestic gold market has remained volatile 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 Rs6,000 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 remained unchanged at Rs2,850 per tola and Rs2,443.41 per 10 grams, respectively.