Gold extends gains as currency depreciation boosts safe-haven demand

• Price of the gold rises by Rs300 per tola.
• Gold rates clock in at Rs131,000 per tola and Rs112,311 per 10 grams.
• Silver prices in the domestic market remain unchanged.

KARACHI: In line with the international market, the gold price in Pakistan extended gains on Tuesday amid depreciation in the Pakistani rupee and uncertainty in oil prices.

The price of the precious commodity rose by Rs300 per tola and Rs257 per 10 grams to settle at Rs131,000 and Rs112,311, respectively.

A day earlier, the precious commodity closed at Rs130,700 per tola and Rs112,054 per 10 grams.

Earlier, speaking to Geo.tv, a gold dealer had said that the local demand in the market is almost flat because the gold is around $5,500 under cost.

"Buyers are purchasing cautiously after analysing the rumours spreading in the market," he said.

The dealer further added that it seems like gold now has seen its bullish surge fade for the time being.

In the international market, gold prices rise $2 per ounce to settle at $1,928 as fighting in Ukraine boosted demand for safe-haven bullion, while investors kept a close tab on Moscow-Kyiv peace talks.

Gold rates in Pakistan are around Rs5,500 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,510 per tola and Rs1,294.58 per 10 grams today.