Gold gains on weakening rupee

• Bullion rates in Pakistan record an increase of Rs500 per tola to close at Rs112,000 on Thursday.
• The prices of gold in Pakistan are around Rs3,500 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 grams on Thursday.

KARACHI: Gold prices in the local bullion market gained Rs500 per tola and Rs429 per 10 grams on Thursday to Rs112,000 from Rs96,022 despite declining prices in world markets.

The precious commodity closed at Rs111,500 per tola and Rs95,593 per 10 grams on Wednesday.

With the wedding season drawing close the demand for the yellow metal is slightly improving.

Speaking to Geo.tv, a gold dealer said that a cumulative drop in gold prices of Rs900 during the last two days helped pick up bullion demand “as customers preferred profit-booking.”

“Whenever there is a drop in price local demand increases,” he said, adding that with the wedding season ahead the demand for gold will increase locally.

The international gold price fell by $5 per ounce to $1,795 on Thursday.

However, it is pertinent to mention that the gold rates in Pakistan are around Rs3,500 below cost compared to the gold rate in the Dubai market.

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