Business Desk 
Mar 13, 2024
Gold prices in Pakistan on Wednesday plunged by Rs1,800 per tola as rupee appreciated against the US dollar in the interbank and open market due to clarity regarding the finance minister.
The data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the per tola gold rate in Pakistan (24 carats) declined by Rs1,800 to settle at Rs228,300; while the 10 grams gold price in Pakistan fell by Rs1,544 to settle at Rs195,730.
Gold rates in Pakistan, contrary to the persistent trend during the week ended March 9 in which the price of gold recorded an overall gain of Rs9,900.
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Meanwhile, in the international market also, the gold prices fell by $18 per ounce to settle at $2,179. The precious commodity remained under pressure after a hot US inflation report dimmed prospects of the Federal Reserve cutting interest rates soon
It should be noted that 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.
Data shared by the association showed the price of silver per tola remained unchanged at Rs2,600 and per 10 grams settled at Rs2,229.72.
It also mentioned that the price of the bullion is made plus a $20 premium in international gold rate.
