Gold gains on weaker rupee

• Bullion rates in Pakistan record an increase of Rs100 per tola to close at Rs112,400.
• The prices of gold in Pakistan are around Rs4,000 below cost compared to the gold rate in the Dubai market.
• Silver prices remain stable at Rs1,430 per tola and Rs1,226 per 10 gram on Monday.

KARACHI: Amid a drop in international gold prices and depreciating rupee against the US dollar, local gold price extended gains on Monday.

According to rates issued by All Sindh Sarafa Association, one-tola and 10-gram (24 karats) gold rates rose by Rs100 and Rs85 to Rs112,400 and Rs96,365, respectively, from Rs112,300 and Rs96,280 on Saturday.

The association determines local prices based on rupee-dollar parity and international rates. According to the market practice, local prices of gold usually go up on rupee devaluation against the US dollar and rising prices of commodities in the international market.

Earlier, speaking to Geo.tv, AA Commodities Director Adnan Agar had said that gold prices increased on the back of dismal US employment data.

The analyst had predicted that bullion prices would increase further during the next week.

However, it is pertinent to mention that the gold rates in Pakistan are around Rs4,000 below cost compared to the gold rate in the Dubai market.

International gold price fell by $4 per ounce to $1,430 on Monday.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,430 per tola and Rs1,226 per 10 gram on Monday.