Gold edges higher despite rupee appreciation

• The bullion price settles at Rs126,250 per tola.
• Price of 10-gram gold clocks in Rs108,239.
• Silver prices in the domestic market remain unchanged.

KARACHI: The gold price in Pakistan gained Rs100 per tola and Rs86 per 10 grams on Wednesday despite some appreciation of the rupee against the US dollar.

The bullion price settled at Rs126,250 per tola and Rs108,239 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.

Hence, it is worth mentioning that gold dealers have rejected the government’s decision to raise GST on the gold industry, urging the government withdraws the decision in the larger interest of their badly affected workers and industry.

In the supplementary finance bill, which was introduced in Parliament last week, the government had proposed an increase in the General Sales Tax on silver and gold from 1% to 17%.

Meanwhile, the yellow metal stayed above the key $1,800-per-ounce level in the international market gaining $17. The price settled at $1,820.

Gold prices edged higher as rising Omicron virus cases supported its safe-haven appeal, but trading was range-bound as investors awaited the minutes of the US Federal Reserve's latest policy meeting as rate hike bets grow.

Earlier, speaking to Geo.tv, AA Commodities Director Adnan Agar had said: “In Pakistan, we cannot see a major price decline due to steep depreciation of our currency."

“Any major price decline in international gold prices would be eclipsed by the rising dollar price in Pakistan and an upward trend would be seen as double price gain for gold,” Agar had said.

In 2021, the price of gold recorded an overall gain of Rs12,000 per tola compared to last year's gain of Rs25,600.

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