Business Desk 
Jul 26, 2024
After getting subjected to slimmer trading owing to fluctuations in local currency and the impending monetary policy announcement due on July 29, the gold rate in Pakistan bounced back slightly Friday.
According to the data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold increased by Rs1,000 per tola and Rs858 per 10 grams to settle at Rs251,500 and Rs215,621, 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, the gold rate in Pakistan is range-bound.
The association reported that the price of gold has been “under cost” by Rs1,000 per tola in Pakistan, 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 remained unchanged at Rs2,860 per tola and Rs2,451.98 per 10 grams, respectively.
"When you look from a fundamental perspective, there are no factors pressuring gold. So, it looks like we are seeing some profit-taking and from a technical perspective, prices could move lower," said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.
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.
