business
Monday Dec 06 2021
By
BDBusiness Desk

Gold shines despite rupee appreciation

By
BDBusiness Desk
— Reuters/File
— Reuters/File

  • The bullion price settles at Rs123,650 per tola and Rs106,010 per 10 grams.
  • Pakistan meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country.
  • Silver prices in the domestic market remained unchanged at Rs1,460 per tola and Rs1,251.71 per 10 grams.


KARACHI: The gold price in Pakistan gained Rs250 per tola and Rs214 per 10 grams on Monday despite some appreciation of the rupee against the US dollar and a decline in the international market.

The bullion price settled at Rs123,650 per tola and Rs106,010 per 10 grams.

Pakistan meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country. Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.

It is pertinent to mention here that the bullion gained around Rs600 per tola last week.

The international gold price edged lower by $4 per ounce to $1,780 today pressured by a stronger dollar and rising expectations that the US Federal Reserve could reduce its asset purchases at a faster pace amid signs of a tighter labour market.

Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the non-interest-bearing metal's opportunity cost.

"Gold has shifted lately to tracking real yields more closely than the dollar. While this should provide greater upside risk to gold over the medium term, conviction is low in the near term," Standard Chartered analyst Suki Cooper said in a note.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,460 per tola and Rs1,251.71 per 10 grams.


— With additional input from Reuters