- Bullion prices settle at Rs119,000 per tola and Rs102,023 per 10 grams on Thursday.
- Increase in gold price comes on the back of a sudden rise in demand.
- Gold rates in Pakistan are around Rs1,000 below cost compared to the gold rate in the Dubai market.
KARACHI: Gold prices in Pakistan skyrocketed on Thursday as a softer rupee and a surge in sales lifted demand for the safe-haven asset.
Gold prices in the local bullion market soared by Rs2,300 per tola and Rs1,972 per 10 gram today to reach Rs119,000 and Rs102,023 amid rising prices in the international markets.
The precious commodity closed at Rs116,700 per tola and Rs100,051 per 10 grams on Wednesday.
Significant fluctuations in the local currency against the US dollar aided the increase in prices of the safe-haven asset.
Speaking to Geo.tv, a gold dealer said that gold prices skyrocketed because of a sudden increase in demand for gold in the local market.
“We have seen a sudden increase in demand because, after the 12th Rabi ul Awal, wedding season will begin in full swing,” he added.
Moreover, the dealer mentioned that speculations that the rupee will further depreciate have added fuel to the already surging price of the yellow metal.
The international gold price rose by $29 per ounce to $1,800 underpinned by a pullback in the US Treasury yields, as investors awaited US inflation data to gauge the Federal Reserve’s path on normalising policy.
“International gold prices, however, are rising at a slower pace due to concerns regarding US monetary policy tightening due in November,” AA Commodities Director Adnan Agar had said on Tuesday, adding that the precious commodity is expected to trade within a range of $1,720-1,800 during the ongoing month.
However, it is pertinent to mention that the gold rates in Pakistan are around Rs1,000 below cost compared to the gold rate in the Dubai market.
Meanwhile, silver prices in the domestic market gained Rs30 per tola and Rs25.73 per 10 gram to close at Rs1,430 per tola and Rs1,226 per 10 grams.