Tag: safe haven

  • Gold price in Pakistan is currently Rs5,000 higher than global market rate

    Gold price in Pakistan is currently Rs5,000 higher than global market rate

    The price of gold continued to increase in Pakistan on Monday, following the gains of last week. According to the All Pakistan Sarafa Gems and Jewellers Association, the rate of 24-carat gold rose by Rs2,000 per tola and Rs1,714 per 10 grammes, settling at Rs237,300 and Rs203,446, respectively.

    In the international market, the gold rate declined by $5, reaching $1,972 per ounce. Throughout last week, the rate of gold experienced fluctuations in both the domestic and international markets, amidst uncertainty surrounding the raising of the US debt limit.

    If the US debt limit, which is currently capped at $31.4 trillion, is not raised, it could trigger the first-ever US default.

    According to Geo, recent volatility in the domestic gold market can be attributed to various factors, including economic and political turmoil, high inflation, and currency depreciation. In such times, people tend to prefer buying yellow metal as a safe investment and a hedge.

    On May 10, the safe-haven bullion reached an all-time high of Rs240,000 per tola, driven by increased political uncertainty following the arrest of Imran Khan, the Chairman of Pakistan Tehreek-e-Insaf (PTI). However, it subsequently dropped in line with the decline in the international rate.

    Pakistan’s gold price peaks above global market levels

    The jewellers’ body also highlighted that local gold in Pakistan is currently overpriced by Rs5,000 per tola compared to the Dubai bullion market. Consequently, the Pakistani gold market is presently more expensive than the world market.

    Data shared by the association revealed a significant jump in the price of silver, with an increase of Rs50 per tola and Rs42.87 per 10 grammes, settling at Rs2,900 and Rs2,486.28, respectively.

  • Gold price in Pakistan increases to Rs209,500 per tola on weak rupee and global trends

    Gold price in Pakistan increases to Rs209,500 per tola on weak rupee and global trends

    Gold prices in Pakistan increased on Monday, following global trends and a potential boost from a weakening rupee. As a result, yellow metal became more expensive, prompting traders to be cautious on the eve of a monetary policy meeting. According to data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold increased by Rs1,200 per tola and Rs1,028 per 10 grams, settling at Rs209,500 and Rs164,645 respectively.

    In the inter-bank market, the rupee depreciated 0.44 per cent against the dollar on Monday, settling at 285.04, a loss of Rs1.25 according to the State Bank of Pakistan (SBP). As inflation in Pakistan spirals out of control, the SBP is expected to raise the policy rate by 100-200 basis points. In March, consumer price inflation in Pakistan rose to a record 35.37 per cent from the previous year.

    Gold is commonly viewed as a hedge against inflation, increasing in value as the purchasing power of the dollar decreases. In Pakistan, March’s monthly inflation surpassed predictions, reaching almost an all-time high of 35.4 per cent compared to the previous year. This has resulted in many individuals experiencing financial difficulty as the cost of living continues to outstrip average incomes. Last month, the central bank raised the policy rate by 300 basis points to 20 per cent.

    On Monday, world gold prices rebounded as the dollar trimmed its initial gains, which were driven by bets that OPEC’s surprise output cuts could raise global energy prices and cause central banks to increase interest rates. Spot gold increased by 0.5 per cent to $1,977.43 per ounce by 1206 GMT, with US gold futures gaining 0.4 per cent to $1,994.50. Earlier in the session, gold hit a one-week low of $1,949.54.

    However, when interest rates are raised to curb rising price pressures, the appeal of gold as an asset diminishes as it does not pay interest. In the domestic market, silver prices increased by Rs80 per tola and Rs68.59 per 10 grams, settling at their all-time highs of Rs2,350 and Rs2,014.47 respectively. While the international prices of silver fell 0.3 per cent to $24.01 per ounce, platinum was also down 0.3 per cent to $988.60, and palladium rose 0.7 per cent to $1,470.72.

  • Seasonal demand: Gold price increases by Rs5,600 to Rs207,500 per tola

    Seasonal demand: Gold price increases by Rs5,600 to Rs207,500 per tola

    On Friday, gold prices in Pakistan experienced a significant increase due to seasonal demand and the rush to purchase the precious metal during Ramadan and the upcoming wedding season.

    According to data from the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold surged by Rs5,600 per tola and Rs4,801 per 10 grammes to settle at Rs207,500 and Rs177,898, respectively.

    In recent sessions, the price of gold had decreased due to a decline in international prices and the appreciation of the Pakistani rupee against the US dollar. However, the bullion sparkled once again on Friday as local markets reopened following a day off for Pakistan Day.

    The price of gold in Pakistan is strongly influenced by the rupee-dollar parity since almost all of the country’s gold demand is met through imports, with traders following international prices to set rates. The metal is imported by jewelers against the US dollar and UAE dirham before its price is converted into rupees.

    The APSGJA also noted that the price of gold in Pakistan was Rs12,000 per tola cheaper than in the Dubai market, indicating that the Pakistani gold market was currently less expensive than the global market.

    Meanwhile, in the international market, gold prices continued to rise on Friday, buoyed by a drop in Treasury yields after the US Federal Reserve hinted at a possible end to its monetary tightening cycle. The per-ounce price settled at $1,997 after a significant increase of $58.

    The longer-term prospects for gold remain positive due to expectations of a pause in US interest rate hikes. In addition, silver prices in the domestic market rose by Rs20 per tola and Rs17.15 per 10 grammes, settling at Rs2,220 per tola and Rs1,903.29 per 10 grammes, respectively.

  • Gold price hits record high as economic conditions push people to buy precious metals

    Gold price hits record high as economic conditions push people to buy precious metals

    On Thursday, the price of gold increased by 1.4 per cent to break the Rs166,000 per tola barrier as it proceeded to set new milestones.

    According to figures provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold increased by Rs2,250 per tola and Rs1,929 per 10 grams to settle at record highs of Rs166,400 and Rs142,661.

    A day earlier, the price of gold reached a record high of Rs164,150 per tola as investors sought safety in the safe-haven metal amid growing worries about the nation’s economic situation getting worse.

    In the meantime, domestic silver prices held steady at an all-time high of Rs1,860 per tola and Rs1,594.65 per 10 grams.

    As the precious metal often reflects world prices, which have been under pressure this year as a result of the US Federal Reserve’s aggressive tightening efforts, the gold surge is particularly notable.

    The price of gold increased by $10 per ounce on the global market, reaching $1,784.

    The country’s gold prices were reaching new highs, but gold traders regret that the lucrative nature of the industry had vanished.

    Here, only investors are purchasing gold. In contrast, artificial jewellery is being used during weddings and other rituals.

  • Gold price hits an all-time high of Rs163,500 per tola in Pakistan

    Gold price hits an all-time high of Rs163,500 per tola in Pakistan

    In line with the continuous increase in global prices, the price of gold in Pakistan rose by another Rs750 per tola on Friday, hitting an all-time high of Rs163,500.

    According to information provided by the All Pakistan Sarafa Gold and Jewellers Association (APSGJA), the price of gold for a tola settled at Rs163,500. The price per 10 grammes increased by Rs643 to reach Rs140,175.

    Given that Pakistan imports the precious metal it needs to meet its demand, the rupee’s stability against the US dollar at a record high level is thought to be the main cause of the increase.

    The stock market is currently experiencing selling pressure due to the economy’s overheating, therefore players are shifting their investments to gold, according to Geo.

    Safe-haven investment is once again drawn to gold. Analysts contend that during times of inflation individuals typically invest in gold.

    The cost of gold on international markets, the rupee-to-dollar exchange rate, and the supply and demand in domestic markets affect the price of gold on local markets. The latest price for local markets was determined considering the prices at which trade took place among buyers and sellers.

    As cautious investors prepared for the release of US jobs data, the price of gold rose by $19 per ounce on the international market, finishing at $1,799, but safe-haven bullion was still expected to post a second consecutive weekly gain due to forecasts of a slowing in the rate of US rate hikes.

    In Pakistan, gold is priced about Rs1,000 less than it would be in the Dubai market.

    In the meantime, domestic silver prices increased by Rs10 per tola and Rs8.58 per 10 grammes, respectively, to settle at Rs1,780 per tola and Rs1,526.06 per 10 grammes.