ISLAMABAD
\nGold price in the country surged for the third straight week by Rs8,500 (+3.63 percent) per tola on a week-on-week basis on the back of rupee\u2019s depreciation and rise in price in the global markets where it surged by $24.80 (+1.30 percent) per ounce.
\nThe gold rate in Pakistan for a single tola of 24-karat on a week-on-week (WoW) basis increased to Rs242,600 from Rs234,100, according to the data provided by All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
\nSimilarly, the gold rate for 10 grams of 24-karat rose to Rs207,990 from Rs200,710. Likewise, the 22-karat gold rates for 10 grams went up to Rs190,656 from Rs184,294 during the week, while price of a single tola of 22-karat gold increased to Rs222,382 from Rs214,957.
\nIn the preceding weeks, the price surged by Rs6,700 (+2.95 percent) and Rs5,600 (+2.52 percent) per tola on a week-on-week basis. Prior to this, the gold price for a single tola of 24-karat in the country fell by Rs2,000 during the preceding three weeks.
\nIt is essential to understand that the exchange rate and international market prices play a direct and influential role in shaping the prices of precious metals like gold in Pakistan.
\nThe Pakistani rupee\u2019s depreciation against the US dollar kept the gold price high in the country. The rupee depreciated by Rs4.47 (-1.49 percent) against the US dollar during the week under review.
\nThis rise in local prices also indicates a trend of increased demand for gold among local investors. Market analysts attributed the surge in gold prices to the ongoing volatility in both the foreign exchange and financial markets.
\nThe 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. On the other hand, the US dollar and gold price go inverse, as if the dollar weakens then gold rises and vice versa. In our case, if the Pakistani rupee strengthens against the US dollar, gold prices come down and vice versa, besides the impact of gold-USD parity.
\nIn global markets, gold closed the week at $1,939.60 per ounce against $1,914.80 in the preceding week, showing a week-on-week increase of $24.80 (+1.30 percent). This was the second weekly gain in a row as per ounce gold price surged by $25.30 (+1.34 percent) in the preceding week. Prior to that, gold price for a single ounce of 24-karat fell by $100.90 during the previous four weeks.
\nDuring the week under review, gold price rose to its strongest level in a month above $1,950. The benchmark 10-year US Treasury bond yield turned negative and went below 4.1 percent after the US jobs report, which showed that the unemployment rate rose to 3.8 percent, and provided a boost to gold price.
\nGold price remains calm before the US Nonfarm Payrolls (NFP) and ISM Manufacturing PMI data for August, which will set an undertone for the Federal Reserve\u2019s (Fed) interest-rate decision to be taken on September 20. Fed Chair Jerome Powell at the Jackson Hole Symposium that further policy action will depend on incoming data and cited that inflation has become more responsive to the job market.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD Gold price in the country surged for the third straight week by Rs8,500 (+3.63 percent) per tola on a week-on-week basis on the back of rupee\u2019s depreciation and rise in price in the global markets where it surged by $24.80 (+1.30 percent) per ounce. The gold rate in Pakistan for a single tola of […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-353675","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n