Gold gains traction in Pakistan as price ticks up by over Rs6,000

KARACHI: Rupee’s depreciation against the dollar combined with an increase in international prices of bullion pushed the gold rates up in Pakistan on Tuesday. 

The price of gold (24 carats) gained Rs6,200 per tola and Rs5,316 per 10 grams to settle at Rs221,000 and Rs189,472, respectively, according to data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). 

Meanwhile, the price of the yellow metal gained $10 to settle at $1,967 in the international market today.

The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, and high inflation. People prefer to buy gold in such times as a safe investment and a hedge.

According to market practice, local prices of gold usually go up on the rupee’s depreciation against the US dollar and declining prices of commodities in the international market.

Moreover, people also tend to buy and sell the precious commodity ahead of the month of Muharram — which marks the beginning of the new Islamic year, eventually increasing the yellow metal’s demand.

Data shared by the association showed the price of silver remained unchanged at Rs2,650 per tola and Rs2,271.94 per 10 grams.

A day earlier, the prices of the yellow metal increased by Rs1,600 per tola and Rs1,371 per 10 grams

Meanwhile, the local currency fell by 1.34% against the greenback in the interbank market today, according to the data shared by the State Bank of Pakistan (SBP).

The rupee closed at Rs283.04 against the dollar.