Gold registers minimal increase on rupee depreciation

KARACHI: The rates of gold edged up slightly as the prices in the international market also saw a minor increase while the rupee fell against the dollar on Monday. 

The price of gold (24 carats) gained Rs1,600 per tola and Rs1,371 per 10 grams to settle at Rs214,800 and Rs184,156, respectively, according to data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).

Meanwhile, the price of the yellow metal gained $2 to settle at $1,957 in the international market today.

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

According to market practice, local prices of gold usually go up on the rupee's depreciation against the US dollar and declining prices of commodities in the international market.

Moreover, people also tend to buy and sell the precious commodity ahead of the month of Muharram — which marks the beginning of the new Islamic year, eventually increasing the yellow metal's demand.

Data shared by the association showed the price of silver remained unchanged at Rs2,650 per tola and Rs2,271.94 per 10 grams.

Meanwhile, the local currency fell by 0.60% against the greenback in the interbank market today, according to the data shared by the State Bank of Pakistan (SBP).

The rupee closed at Rs279.26 against the dollar.