Thursday Nov 18, 2021
KARACHI: Gold price in Pakistan jumped by Rs2,000 per tola in Pakistan due to rupee depreciation — which dropped by 0.52% against the US dollar on Thursday.
According to All Sindh Saraf Jewellers Association (ASSJA), gold prices in the local bullion market soared by Rs2,000 per tola to reach Rs124,000 while the price of 10 grams gold increased by Rs1,715 to reach Rs106,310.
A day earlier, the precious commodity closed at Rs122,000 per tola and Rs104,595 per 10 grams.
The precious commodity had lost around Rs7,100 per tola during the period of November 12-17 on the back of concerns that the State Bank will raise its benchmark interest rates.
Gold — often viewed as an inflation-hedge — had so far benefited from low interest rates during the pandemic.
Any hike in rates will reduce bullion’s appeal, as higher interest rates raise the opportunity cost of holding the non-interest-bearing metal.
The State Bank of Pakistan (SBP) is scheduled to announce the monetary policy rate for the next two months tomorrow.
Meanwhile, the precious metal continued to decline in the international market, recording a meagre loss of $2 per ounce to settle around $1,860.
It is pertinent to mention that gold rates in Pakistan are around Rs4,000 below cost compared to the gold rate in the Dubai market.
Furthermore, silver price in the domestic market remained unchanged at Rs1,440 per tola and Rs1,234.56 per 10 grams today.