Web Desk 
Apr 19, 2024
Gold price in Pakistan bounced back on Friday in line with a surge in international prices which sparked concerns over geopolitical tensions raising the demand for safe-haven assets.
The data released by All Pakistan Sarafa Gems and Jewellers Association showed that the price of gold rose by Rs500 per tola and Rs429 per 10 grams to settle at Rs250,700 and Rs214,935, respectively.
Gold price in Pakistan touched an all-time high of Rs251,900 per tola a day earlier as global tensions coupled with rupee depreciation against the US dollar fueled bullion rally.
In the international market, gold price rose by $5 per ounce to settle at $2,400 as reports that Israel had attacked Iran prompted fears of a wider regional conflict, increasing bullion's safe-haven appeal.
The news of Israel's attacks on Iran today "is driving gold price attention on the Middle East which has been the sole thing keeping the gold price moving higher for weeks now. Market is now waiting for more information about the nature of the attack, and what the response would be," said Kyle Rodda, a financial market analyst at Capital.com.
"Gold is not a monetary policy trade at the moment, it's a geopolitics trade," Rodda said.
Meanwhile, silver price in the local market remained unchanged at Rs2,780 per tola and Rs2,383.40 per 10 grams.
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.
— Additional input from Reuters
