KARACHI: Gold prices on Tuesday saw an increase of Rs2150 per tola despite the appreciation of the rupee against the US dollar.
According to the All-Pakistan Jewellers Manufacturers Association, the gold price surged by Rs2,150 per tola and Rs1,843 per 10 grams to settle at Rs148,450 per tola and Rs127,272 per 10 grams, respectively.
The Pakistani rupee continued to recover against the US dollar as it gained Rs1.67 in the interbank market.
According to the State Bank of Pakistan (SBP), the local currency closed at Rs226.5 after appreciating Rs1.67 or 0.73 percent from yesterday’s close of Rs227.29.
Gold is considered a hedge against inflation and economic unpredictability. The opportunity cost of holding non-interest-bearing bullion increases with rising interest rates, but it is quite sensitive to those changes.
On the global market, the price of the yellow metal increased by $38 to hold above the crucial $1,700 per ounce threshold as the dollar and US Treasury yields fell and investors anticipated a slower pace of monetary tightening from the Federal Reserve. The final amount was $1,704.
In the meantime, domestic silver prices increased by Rs60 per tola and Rs51.44 to end at Rs1,620 per tola and Rs. 1,388.88 per 10 grams.
