Gold price extends gains in Pakistan, rises by Rs750 per tola

Image showing stacks of gold bars. — AFP/File
Image showing stacks of gold bars. — AFP/File
  • Gold price settles at Rs125,550 per tola.
  • Safe-haven asset has gained Rs1,350 per tola in last two sessions.
  • Silver prices in the domestic market gain Rs10 per tola.

KARACHI: In line with the international market, the gold price in Pakistan extended gains on Wednesday amid depreciation in the Pakistani rupee.

The price of the precious commodity rose by Rs750 per tola and Rs643 per 10 grams to settle at Rs125,550 and Rs107,639, respectively.

Cumulatively, the safe-haven asset has gained Rs1,350 per tola during the last two sessions.

In the international market, gold recorded an increase of $9 per ounce to settle at $1,827 as a pullback in US Treasury yields ahead of a widely expected robust inflation data out of the United States kept bullion investors on the edge.

Gold prices are attempting to retest the $1,830 resistance region that has repelled bullion bugs on several occasions since July 2021, said Extinity analyst Han Tan.

“Prices must also contend with the implications of Thursday’s US inflation figures, whereby more evidence of persisting inflationary pressures that rouses the Fed into a more aggressive policy stance could dampen the precious metal’s allure.”

Analysts expect gold prices to largely stay around the current levels until the release of January’s US CPI numbers, which could offer more cues on the pace of interest rate hikes.

While a robust inflation reading is expected to burnish gold’s mettle as an inflation hedge, US interest rate increases would raise its opportunity cost as a non-yielding asset.

However, it is pertinent to mention that the gold rates in Pakistan are around Rs500 below cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market gained Rs10 per tola and Rs8.57 per 10 grams to settle at Rs1,460 per tola and Rs1,251.71 per 10 gram today.

— With additional input from Reuters 

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