Gold prices move lower in Pakistan; all eyes on interest rate
On Saturday, gold prices went in the opposite direction and went down. However, fears about historically high inflation and lingering economic risks cut into the losses.
All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) data shows that the price of gold (24 carats) fell by Rs400 per tola and Rs343 per 10 grams to Rs208,300 and Rs178,584, respectively.
Even though it gained Rs4,100 per tola in the last four sessions, the valuable metal gained Rs2,600 per tola during the week ending April 1. (Tuesday-Friday). It went up by Rs14,300, or 7.35 percent, per tola in March as a whole.
During the week, investors started paying more attention to the precious commodity because economic tensions are still rising and the International Monetary Fund (IMF) is reviewing external financing pledges from friendly countries before it releases bailout funds.
The delay in bringing the program back has hurt the money market, which is making more people want to buy gold.
The rupee-dollar parity affects the price of gold because almost all of the country’s gold needs are met by imports, and sellers set prices in the country based on the price of gold in other countries.
Before changing the price of the metal into rupees, jewelers buy it with the US dollar and the UAE dirham.
Prices in the local gold market also went up because of a rise in demand during the holiday season.
The association also said that the price of gold in Pakistan is “undercost” by Rs8,000 per tola compared to the Dubai market, which shows that the gold market in Pakistan is currently cheaper than the world market.
On the local market, however, silver prices stayed the same at Rs2,270 per tola and Rs1,946.15 per 10 grams.
On the foreign market, the price of an ounce of gold went down by $12 to $1,969, but it was still on track for a second straight quarterly rise, as investors bought the metal in hopes that the US Federal Reserve will slow the rate of interest rate hikes.
So far this quarter, gold has gained more than 8% and was on track for its best month since November 2022.