Tag: safe-haven asset

  • Gold price jumps by Rs1,100 per tola, reaching Rs214,300

    Gold price jumps by Rs1,100 per tola, reaching Rs214,300

    The gold prices in Pakistan continued their upward trajectory, building on gains from the last session of the previous week. On Monday, the price of 24-karat gold surged by Rs1,100 per tola, reaching Rs214,300 per tola.

    According to the Karachi Sarafa Association, the price of 10-gramme 24-karat gold stood at Rs183,728, marking an increase of Rs943 compared to the previous session. Additionally, the price of 10-gramme 22-karat gold rose to Rs168,417.

    In contrast, silver prices remained stable, with 24-karat silver being sold at Rs2,580 per tola and 10-gramme silver trading at Rs2,211.93.

    It is noteworthy that domestic gold ended last week in the red zone due to a decline in international prices. The ongoing uncertainty surrounding the delay in election results also failed to stimulate demand for this safe-haven asset.

    Internationally, spot gold has extended its rally for the third consecutive session, currently trading at $2,021.8. This rebound follows last week’s release of hotter-than-anticipated US inflation data, which initially pushed gold below the $2,000 mark for the first time in two months.

    Given the influence of domestic currency fluctuations on the domestic gold rate, it is crucial to mention that the Pakistani rupee (PKR) concluded its 13-week-long historic winning streak against the US dollar. Last week, the PKR experienced a marginal drop of 8 paisa.

    Since gold is denominated in US dollars, a depreciation of the PKR against the US dollar results in an increase in the value of PKR-denominated gold. The market remains attentive to both global and domestic factors influencing these shifts in precious metal prices.

  • Pakistan’s gold prices slide amidst strengthened rupee and international rate hike

    Pakistan’s gold prices slide amidst strengthened rupee and international rate hike

    In Pakistan, the domestic gold price continued its decline for the second consecutive week, with the cost of 24-karat gold dropping by Rs550 per tola to Rs217,450. 

    The Karachi Sarafa Association noted that 24-karat gold concluded the week’s last trading session with a gain of Rs950 per tola. 

    The 10-gramme 24-karat gold settled at Rs186,428, reflecting a gain of Rs814, while the 10-gramme 22-karat gold closed at Rs170,146.

    The international spot rate, used for calculating local rates, closed at $2,068, marking a $3 increase compared to last week. 

    Escalating concerns over the Middle East conflict led to a rise in the safe-haven asset, but gains were limited due to hawkish remarks from Federal Reserve officials.

    Despite the international rate showing an uptick, domestic bullion faced a downside this week due to the strengthened value of the Pakistani rupee against the US dollar. 

    The PKR marked its ninth consecutive weekly gain against the USD, driven by positive developments as the Executive Board of the IMF concluded the first review of Pakistan’s economic reform programme under the Stand-by Arrangement. 

    This successful review further boosted investor confidence, contributing significantly to the PKR’s upward trend against the dollar.

    The interplay between the domestic gold price and the local rupee is evident, as gold, denominated in US dollars, tends to decrease in value when the home currency appreciates against the greenback.

  • Gold price increases to Rs208,300 per tola as investors adopt cautious approach amid uncertainties

    Gold price increases to Rs208,300 per tola as investors adopt cautious approach amid uncertainties

    The price of gold in Pakistan soared by 2 per cent on Saturday, according to data from the All-Pakistan Sarafa Gems and Jewellers Association. The political unrest in the country has left investors uncertain about the economy, prompting them to seek safe-haven assets such as gold.

    The price of gold (24 carats) increased by Rs4,100 per tola and Rs3,516 per 10 grammes, reaching Rs208,300 and Rs178,584, respectively. In the week ending March 18, gold gained Rs9,600 per tola, or 4.8 per cent, as it rose during all six trading sessions, despite the little appreciation of the Pakistani rupee against the US dollar.

    The precious metal is expected to remain attractive to investors as they adopt a cautious approach.

    The price of silver also rose by Rs100 per tola and Rs85.73 per 10 grammes to settle at Rs2,250 per tola and Rs1,929 per 10 grammes, respectively. Meanwhile, in the international market, gold prices surged by over 2 per cent due to banking crises shaking global markets, putting bullion on track for its biggest weekly rise in three years. The price per ounce settled at $1,989 after an increase of $53. This rise in gold prices was also driven by bets for a less aggressive Federal Reserve in its fight against inflation.

    Gold is currently Rs11,500 per tola “undercost” in Pakistan compared to the Dubai market, making it cheaper for investors to buy. According to experts, gold is surging on fears that more bad banking news could appear over the weekend and hopes that the FED will pause its rate hikes next week.

    With political and economic uncertainties looming in Pakistan, gold is likely to shine as investors seek a low-risk profile.