Saturday Mar 11 2023

Gold regains shine, price rises by Rs1,200 per tola in Pakistan

An undated image of gold bangles. — Reuters/File
An undated image of gold bangles. — Reuters/File

  • Gold price settles at Rs198,700 per tola.
  • Silver prices remain unchanged in local market.
  • Prices rise in line with a massive surge in international market.

Gold prices in Pakistan bounced back on Saturday in line with a massive surge in international prices which sparked concerns over expensive imports raising the demand for safe-haven assets.

The price of gold (24 carats) increased by Rs1,200 per tola and Rs1,029 per 10 grams to settle at Rs198,700 and Rs170,353, respectively, according to All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).

Gold demand in Pakistan has jumped manifold. 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.

Cumulatively, the yellow metal has shed Rs1,300 per tola during the outgoing week — and it has only registered gains twice as the movement of Pakistani currency remains volatile.

Analysts say gold may be an effective way to defend investments against inflation, but only over long periods of time.

Comparatively, over shorter periods of time, the inflation-adjusted price of gold swings wildly, making it not a very strong near-term hedge for inflation.

Meanwhile, silver prices in the domestic market remained unchanged at Rs2,080 per tola and Rs1,783.26 per 10 grams, respectively.

In the international market, gold prices jumped nearly 2%, driven by a slide in US Treasury yields and broader financial markets as worries over a fallout in the banking sector eclipsed a strong US jobs report and drove safe-haven flows into bullion. The per-ounce price settled at $1,866 after a surge of $32.