KARACHI: Gold once again shined in Pakistan with its price gaining nearly 1% even as the rupee continued to depreciate against the US dollar in both open and interbank markets.
Data released by All Sindh Saraf Jewellers Association (ASSJA) showed that gold prices in the local market declined by Rs1,200 per tola and Rs1,029 per 10 grams to settle at Rs147,100 per tola and Rs126,115 per 10 grams.
It should be noted that Pakistan remains a small market for gold at the global level. The country meets the commodity’s demand through imports as it does not produce it locally.
Accordingly, the gold price for local markets is determined by considering its prices in world markets, the rupee-dollar exchange rate, and demand and supply in domestic markets.
It should be noted that the gold price stands below cost and is cheaper by Rs7,000 per tola compared to Dubai.
In the international market, bullion prices rose by $18 per ounce to settle at $1,764; however, investors await direction on interest rates from US Federal Reserve.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,540 per tola and Rs1,320.30 per 10 grams today.