Sunday May 26, 2024

Gold price declines in Pakistan

Rate of gold (24 carats) stands at Rs237,200 per tola as international price extends losses

By Business Desk
May 23, 2023
A salesperson displays gold jewellery at a store in this undated file photo. — AFP
A salesperson displays gold jewellery at a store in this undated file photo. — AFP

Despite the safe-haven bullion's value extending losses in the international market, the price of gold saw a meagre decline in Pakistan on Tuesday.

The rate of gold (24 carats) fell by Rs100 per tola and Rs85 per 10 grams to settle at Rs237,200 and Rs203,361, respectively, data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.

Meanwhile, the international rate decreased by $13 to reach $1,959 per ounce due to a stronger US dollar and Treasury bonds, which gained on the back of an expected interest rate hike by the Federal Reserve.  

Investors also waited to see whether US lawmakers could reach a deal on raising the federal debt limit, without which the country's first-ever default would be triggered.

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 yellow metal in such times as a safe investment and a hedge.

The jewellers' body also said that local gold was "overcost" by Rs4,000 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 Rs2,900 per tola and Rs2,486.28 per 10 grams, respectively.