Business Desk 
Jul 08, 2024
Gold price in Pakistan snapped its four-session gaining streak on Monday, following overseas leads, but buying retreated with the start of the month of Muharram.
Data released by All Sindh Sarafa and Jewellers Association (ASSJA) showed that the price of gold declined by Rs1,300 per tola and Rs1,113 per 10 grams to settle at Rs245,100 and Rs210,134.
It should be noted that during the month of Muharram — which marks the beginning of the new Islamic year — the demand for bullion decreases in the local market.
The association reported that the price of gold has been “under cost” by Rs3,500 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 Rs2,900 per tola and Rs2,486.28 per 10 grams, respectively.
In the international market, gold prices slipped as investors booked profits after bullion hit a more than one-month high in the previous session on rising bets of US interest rate cuts in September.
Spot gold fell 0.6% at $2,377.75 per ounce as of 0704 GMT, after rising to its highest level since May 22 on Friday. US gold futures eased 0.5% to $2,385.50.
A soft US inflation report and a dovish tone from Powell when he testifies look like the ideal catalysts for gold to consider new highs, said Matt Simpson, a senior analyst at City Index.
Elsewhere, top consumer China's central bank refrained from gold purchases to its reserves for a second consecutive month in June.
"China may have paused their gold purchases, but it remains in demand overall. And that is likely to keep gold on bullish watchlists and tempt bullish bets upon any dips," Simpson said.
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.
