Tag: Gold Demand

  • Second consecutive decline: Gold price drops by more than Rs6,000 per tola

    Second consecutive decline: Gold price drops by more than Rs6,000 per tola

    The price of gold in Pakistan fell for the second consecutive day on Tuesday, as the rupee depreciated against the US dollar. The price of 24 karat gold decreased by Rs6,300 per tola (11.66 grammes) and Rs5,402 per 10 grammes, to settle at Rs232,800 and Rs199,588, respectively.

    The decline in gold prices was in line with the fall in the international market, where the price of gold fell by $9 to settle at $1,931 per ounce. The gold rate has been volatile in Pakistan recently due to political and economic uncertainty, and high inflation.

    The price of silver also fell by Rs100 per tola and Rs85.74 per 10 grammes, to settle at Rs2,800 and Rs2400.5, respectively.

    The depreciation of the rupee against the dollar is the main reason for the decline in gold prices in Pakistan. When the rupee weakens, gold becomes more expensive for buyers in Pakistan, who have to pay more rupees to buy the same amount of gold.

    The political and economic uncertainty in Pakistan is also a factor that is contributing to the volatility of gold prices. Investors are unsure about the future of the country, and they are looking to gold as a safe haven investment. This demand for gold is pushing up prices.

    The high inflation in Pakistan is also making gold more expensive. When inflation rises, the value of the rupee decreases, which makes gold more expensive for buyers in Pakistan.

    Overall, the gold rate in Pakistan is expected to remain volatile in the near future due to the factors mentioned above.

  • Gold price in Pakistan increases by Rs4,000 to Rs208,000 per tola ahead of Muharram

    Gold price in Pakistan increases by Rs4,000 to Rs208,000 per tola ahead of Muharram

    In anticipation of the upcoming month of Muharram, which signifies the start of the new Islamic year, gold prices in Pakistan experienced significant gains on Thursday.

    Data provided by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) reveals that the price of 24-carat gold rose by Rs4,000 per tola and Rs3,429 per 10 grammes, settling at Rs208,000 and Rs178,326, respectively.

    Simultaneously, the international market witnessed a surge in the price of gold, with a $13 increase, reaching $1,959 per ounce. This rise in gold rates can be attributed to prevailing political and economic uncertainties, as well as high inflation in Pakistan. During such periods, individuals often turn to gold as a safe investment and hedge against market volatility.

    As the month of Muharram approaches, there is typically an upswing in the buying and selling of this precious commodity, leading to increased demand. Supporting this trend, APSGJA data reveals that the price of silver rose by Rs50 per tola and Rs42.87 per 10 grammes, settling at Rs2,600 and Rs2,229.08, respectively. Notably, the previous day witnessed a decline in the bullion price by Rs500 per tola and Rs429 per 10 grammes.

    Furthermore, the local currency demonstrated minimal gains of 0.37 per cent against the US dollar in the interbank market today, as reported by the State Bank of Pakistan (SBP). The rupee closed at Rs276.46 against the dollar.