Gold prices in Pakistan remain unchanged despite increase in international rates

• Domestic gold prices settle at Rs120,200 per tola and Rs103,052 per 10 grams on Friday.
• International gold price rises by $13 per ounce to $1,792.
• Silver prices clock in at Rs1,420 per tola and Rs1,217.42 per 10 grams on Friday.

KARACHI: The price of gold in the local market remained unchanged despite an increase in international prices on Friday. The precious metal closed the day at Rs120,200 per tola and Rs103,052 per 10 grams.

The rates last recorded a significant increase of Rs2,800 per tola and Rs2,400 per 10 gram on Thursday compared to Wednesday's prices.

International gold prices, meanwhile, increased by $13 to close at $1,792 on Friday.

Earlier, speaking to Geo.tv, AA Commodities Director Adnan Agar had said the high inflation rate has badly hit the purchasing power of people, hence, the local demand for the precious commodity has dropped despite the wedding season.

Going forward, Agar had predicted that the price of gold will increase further.

Gold is once again attracting safe-haven investment.

Investors who used to pour money into foreign currencies, particularly in the US dollar to avoid the impact of inflation, are now buying gold because the government and the central bank have tightened regulations pertaining to the purchase of foreign currencies in the open market.

Past practices suggest that people used to take aggressive positions in gold in inflationary days.

“International gold prices, however, are rising at a slower pace due to concerns regarding US monetary policy tightening due in November,” Agar had said.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,420 per tola and Rs1,217.42 per 10 grams.