ISLAMABAD: Gold prices continued losing traction in the local market on Friday, with the price of one tola of 24-karat gold dipping by Rs1,500 in the country. According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold decreased by Rs1,500 to Rs217,000 from Rs218,500. Similarly, the gold rate for 10 grams of 24-karat moved down to Rs186,050 with a decrease of Rs1,285 per 10 grams. Following suit, the gold price for 22-karat was recorded at Rs198,900 per tola and Rs170,550 per 10 grams. TLTP
In the international market, as of 1350 hours GMT, the gold futures were available at $1,934.70 per ounce, showing an increase of $20.90 (+1.09 percent). Out of the $20.90 per ounce increase, -$7.95 was due to strengthening of the US dollar and +$28.85 was due to predominant buyers, according to Kitco Gold Index.
Gold price has stretched its recovery as the precious metal found strength near $1,912 as the US Dollar Index (DXY) has shown signs of exhaustion in the upside momentum. The US Dollar Index has corrected to near 103.00, however, the upside is still solid as Federal Reserve Chair Jerome Powell has confirmed that more rate hikes are appropriate but at a careful pace.
The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, and high inflation. The people prefer to buy this precious commodity in such times as a safe investment and a hedge. It is to note that the price of the bullion is Rs4,000 per tola “under-cost” in Pakistan as compared to the Dubai market, showing that the Pakistani gold market is currently cheaper as compared to the global bullion markets.
