Gold shines in Pakistan despite decrease in international rates

KARACHI: Despite a decrease in international gold rates, the prices in the local market saw a minor increase as they gained over Rs1,500 per tola on Friday. 

The price of gold (24 carats) lost Rs1,800 per tola and Rs1,542 per 10 grams to settle at Rs222,900 and Rs191,100, respectively, according to data issued by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). 

Meanwhile, the price of the yellow metal lost $12 to settle at $1,966 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.

Data shared by the association showed the price of silver also made minor losses as it fell by Rs150 and Rs128.6 to settle at Rs2,650 per tola and Rs2,357.68 per 10 grams, respectively.

The jewellers' body also said that local gold was “undercost” by Rs4,000 per tola in Pakistan, compared to the Dubai bullion market.

In the last three sessions — Monday, Tuesday and Wednesday — the gold rates increased by Rs13,200 per tola ahead of Muharram. However, a day earlier, the prices of bullion declined by Rs5,300 per tola and Rs4,544 per 10 grams.

Meanwhile, the local currency also fell by 0.58% against the greenback in the interbank market today, according to the data shared by the State Bank of Pakistan (SBP).

The rupee closed at Rs286.81 against the dollar.