Following two-day decline, gold rate up again in Pakistan

After falling by Rs1,700 for the last two days, the rate of gold rose again in Pakistan on Wednesday.

The price of gold (24 carats) increased by Rs1,600 per tola and Rs1,372 per 10 grams to reach Rs234,400 and Rs200,960, respectively, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The international rate went up $4 to settle at $1,960 per ounce.

Despite the minor increase, the safe-haven bullion's value was heading for the first monthly decline in three months in the international market because of a stronger dollar as investors expect the US Federal Reserve to hike interest rates in June.

Separately, gold also lost appeal on expectations that US Democrats and Republicans will reach an agreement to raise the federal debt ceiling — currently capped at $31.4 trillion — without which the country would default for the first time.

Meanwhile, the gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge.

The rupee lost Re0.12 or 0.04% against the US dollar in the interbank market Wednesday, closing at Rs285.47, according to State Bank of Pakistan data.

Data shared by the jeweller's body showed that the rate of silver declined by Rs50 per tola and Rs42.87 per 10 grams to reach Rs2,800 and Rs2,400.54, respectively.