Friday May 26, 2023
The price of gold dipped slightly in the domestic market Friday, reflecting the continued fluctuation in the international market.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the rate of gold (24 carats) decreased by Rs250 per tola and Rs214 per 10 grams to reach Rs235,750 and Rs202,118, respectively.
The international rate declined by $9 to settle at $1,952 per ounce.
Gold's value has remained volatile in the international market recently, with the safe-haven bullion set for its third weekly loss. Investors are keeping an eye on negotiations between US Democrats and Republicans on raising the federal debt ceiling, the deadline for which is drawing closer.
If the debt ceiling — which is currently capped at $31.4 trillion — is not raised, it would trigger the first-ever US default.
Besides this, international investors are also looking at the US Federal Reserve's rate hike path. High interest rates negatively affect gold's value.
Separately, the domestic price of gold has remained volatile due to a number of factors, including economic and political turmoil, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge.
The rupee, which fell to an all-time low of Rs298.93 on May 11, closed at Rs285.15 per US dollar in the interbank market Friday. It gained Re0.59 or 0.21% against the US dollar, according to State Bank of Pakistan data.
The jewellers' body also said that local gold was "overcost" by Rs5,000 per tola in Pakistan compared to the Dubai bullion market. This means that, at present, the Pakistani gold market is more expensive than the world market.
Data shared by the association showed the price of silver remained unchanged at Rs2,900 per tola and Rs2,486.28 per 10 grams, respectively.