Business Desk 
Jul 31, 2024
Gold edged higher on Wednesday, taking a breather after registering a meagre decline the previous day, in line with the trend in the international market.
All Pakistan Sarafa Gems and Jewellers Association (APSGJA), gold rate in Pakistan rose by Rs1,200 per tola and Rs1,092 per 10 grams to settle at Rs253,500 per tola and Rs217,335 per 10 grams, respectively.
Gold price touched an all-time high of Rs254,000 per tola in the local market on July 18 as international investors opted for heavy positions in anticipation of the US central bank cutting interest rates in September 2024. However, trend of gold rate in Pakistan is range-bound.
The association reported that the price of gold has been “under cost”, as compared to prices in Dubai. This means that, at present, the Pakistani gold market is less expensive than the world market.
Silver prices in Pakistan rose by Rs40 per tola and Rs28.30 per 10 grams to settle at Rs2,900 per tola and Rs2,486.28 per 10 grams, respectively.
In the international market, gold prices gained around 1% as investors remained optimistic that the US Federal Reserve could drop clues about lowering interest rates in September at the end of the policy meeting this week.
Spot gold was up 0.8% at $2,403.47 per ounce as of 1747 GMT. US gold futures settled 1% higher at $2,451.9.
"Europe is showing some more cracks within its economy and they are set to cut rates in September and US is expected to cut rates as well, that has supported the gold market," said Phillip Streible, chief market strategist at Blue Line Futures.
How is gold price determined in Pakistan?
Gold price in Pakistan is announced by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), which determines gold prices in Pakistan for local markets six days a week from Monday to Saturday.
Pakistan is a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the precious metal locally.
Accordingly, the gold rate in Pakistan is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets. The latest price for local markets was determined to keep in view the prices at which trade took place among buyers and sellers.
