Tuesday, November 29, 2022

Gold gains for second day as subdued currency lifts appeal

Gold price rises Rs300 per tola to settle at Rs161,600

An undated image of gold jewellery sets displayed in a shop. — Reuters/File
An undated image of gold jewellery sets displayed in a shop. — Reuters/File

  • Gold price settles at Rs161,600 per tola.
  • Subdued rupee value lifts gold appeal.
  • Silver price rises Rs30 per tola. 

KARACHI: Gold price in Pakistan extended gains on Tuesday as subdued rupee value boosted the precious metal’s appeal in the local and international markets.

Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold rose by Rs300 per tola and Rs258 per 10 grams to settle at Rs161,600 and Rs138,546, respectively.

While the slightly weaker rupee is supporting gold at the moment, interest rate hikes weighed on gold prices which restricted the gains.

The yellow metal is considered a hedge against higher inflation and a safe store of value in times of economic and political uncertainty.

However, higher interest rates increase the opportunity cost of holding the non-yielding metal which restricted the gains today.

Gold price in the local market is heading towards its all-time high of Rs162,500 per tola recorded on July 28.

In the international market, the price of the yellow metal declined by $3 per ounce settling at $1,756 following hawkish comments from Fed officials James Bullard and John Williams.

The precious commodity's rates in Pakistan are around Rs2,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market rose by Rs30 per tola and Rs25.72 per 10 grams to settle at Rs1,710 and Rs1,491.76, respectively.