Tuesday Sep 13 2022

Gold firms as inflation risks take centre stage

A representational image of gold jewellery. — Reuters/File
A representational image of gold jewellery. — Reuters/File

  • Gold price settles at Rs156,500 per tola.
  • Price increased by Rs6,400 in last five session.
  • Silver prices in local market remained unchanged.

KARACHI: Gold edged higher on Tuesday on a retreat in the rupee as well as worries over inflation and slowing economic growth due to the catastrophic floods while looming interest rate hikes capped gains.

Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold has jumped by Rs500 per tola and Rs429 per 10 grams to Rs156,500 and Rs134,174 in Pakistan on Tuesday.

Cumulatively, the price of gold rose Rs6,400 per tola in the last six sessions. (Thursday to Tuesday).

Inflation and growth concerns have both been turbocharged by the flash floods and combined with volatility in equities and bond markets, investors have been increasingly looking for safe havens.

Gold is stuck in a range and is going to continue to be in a range in the near term. The market will only break out into a direction after it gets more economic data and sees stability in rupee-dollar parity.

In the international market, the price of yellow metal declined by $2 per ounce to settle at $1,730.

Gold rates in Pakistan are around Rs3,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,570 per tola and Rs1,346.02 per 10 grams.