- Cumulatively, safe-haven asset gained Rs850 per tola during week ended Feb 26.
- Price of gold records an increase of Rs385 per 10 grams.
- Per tola price of gold settles at Rs127,950.
KARACHI: The price of gold in Pakistan recorded an increase of Rs450 per tola and Rs385 per 10 grams to settle at Rs127,950 per tola and Rs109,696 per 10 grams, respectively.
A day earlier, the precious commodity closed at Rs127,500 per tola and Rs109,311 per 10 grams.
Cumulatively, the safe-haven asset gained Rs850 or 0.66% per tola during the week ended February 26.
Earlier, speaking to Geo.tv, a gold dealer said global politics heavily affect gold prices. Prior to Russia and Ukraine conflict, the trade war between the US and China had affected the commodity rates in the international market, and the local market gets directly affected from it, he added.
He said that investors are closely watching developments regarding the Russia-Ukraine crisis.
In the international market, the gold prices reversed course to slide $10 per ounce to close at $1,890, as Russia’s invasion of Ukraine triggered sharp swings in the precious metals market.
“We think the price drop is premature, there is a risk of further escalation in the conflict and it could be just a temporary correction,” said Commerzbank analyst Daniel Briesemann.
Some market participants believe the sanctions imposed by the West on Russia are not tough enough, Briesemann added.
Prices of the safe-haven metal rallied more than 3% to as high as $1,973.96 in the last session after Russia attacked Ukraine. They retreated more than $90 from Thursday’s highs.
“The dramatic rise followed by the just as dramatic fall is very technically motivated,” said David Meger, director of metals trading at High Ridge Futures.
It is pertinent to mention that the gold rates in Pakistan are around Rs3,500 below the cost compared to the gold rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,470 per tola and Rs1,260.28 per 10 grams.
With additional input from Reuters