Thursday Jun 30 2022

How did Pakistan's gold perform on the last day of FY22?

A representational image of gold bars. — illustration
A representational image of gold bars. — illustration

  • Gold price settles at Rs141,500 per tola today.
  • During FY22, gold price rises by Rs33,500 per tola.
  • Silver prices in domestic market remain unchanged.

KARACHI: The price of gold in Pakistan closed on the last day of the fiscal year 2021-22 with a loss of Rs350 per tola in line with a decrease in the international market.

The precious commodity lost Rs350 per tola and Rs300 per 10 grams — the exact same gains recorded a day earlier — to settle at Rs141,500 per tola and Rs121,313 per 10 grams, respectively.

During FY22, the price of gold recorded an overall gain of Rs33,500, or 31.01%, per tola.

Meanwhile, in the international market, the gold price decreased by $22 per ounce to settle at $1,804 amid growing fears of a global downturn.

Gold rates in Pakistan are around Rs1,000 below cost compared to the gold rate in the Dubai market.

Silver prices in the domestic market remained unchanged at Rs1,550 per tola and Rs1,328.87 per 10 grams today.

Factors contributing to performance during FY22

Commenting on the performance of the precious metal during the financial year, AA Commodities Adnan Agar said that the gold gained support from the geopolitical crisis and the global downturn.

He cited some reasons that led to an increase of over 31% in the per tola price; which included:

  • Massive depreciation of rupee against the US dollar
  • Rising price of gold in the international market
  • Ongoing Russia and Ukraine war
  • Monetary policy tightening
  • Increase in inflation across the world, particularly in Pakistan

The analyst further mentioned that the gold price is expected to remain volatile during the next fiscal year 2022-23.