Gold rate in Pakistan today: Bullion loses shine, price declines by Rs500 per tola

Price of per ounce gold in the international received a markdown of $5 to settle at $2,273
An undated image of gold jewellery. — Freepik

An undated image of gold jewellery. — Freepik

After continuously observing substantial upticks for almost a week, gold price in Pakistan dropped slightly on Tuesday, led by the rupee-dollar fluctuations and the yellow metal's cost in the international market.

According to the data shared by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the per tola gold rate in Pakistan (24 carats) plunged by Rs500 to settle at Rs237,100, while the 10 grams gold price in Pakistan noted a decrease of Rs429 to settle at Rs203,275.

However, data shared by the association also showed that the price of silver per tola and per 10 grams remained immune to any fluctuations, staying flat at Rs2,600 and Rs2,211.93, respectively. Conversely, the cost of per ounce gold in the international received a markdown of $5 to settle at $2,273.

It's noteworthy that the bullion price in the domestic market undergone an upsurge of Rs6,600 per tola during the past week.

Gold price in Pakistan is announced by the association, 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.

Gold price in Pakistan has been volatile in Pakistan recently amid continued political and economic uncertainty and high inflation. People prefer to buy this precious commodity in such times as a safe investment and a hedge.

Local dealers believe that the return of inflationary days in Pakistan and worldwide has once again invited investors’ attention towards the yellow metal as safer commodities become attractive at such a time.

On the physical side, demand for gold in Pakistan recently picked up pace as some consumers bought into a retreat in domestic prices as the wedding season will kick off immediately after Ramadan.