Gold price rises by nearly Rs1,000 per tola

KARACHI: Gold shined bright on Monday after the price rose by Rs950 per tola as the rupee’s technical correction boosted its safe-haven appeal.

Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the gold price settled at Rs148,300 per tola. The price rose by Rs814 per 10 grams to settle at Rs127,143.

Cumulatively, the precious commodity gained Rs3,550 per tola during the week that ended October 15.

Gold prices seem to be consolidating. There is a pause in the market ahead of major event risks, with uncertainty regarding the International Monetary Fund (IMF) review due in November coupled with inflation numbers.

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The precious commodity is considered an inflation hedge but rising interest rates reduce the non-yielding bullion’s appeal.

Pakistan meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country. Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.

In the international market, the price of yellow metal rose by $13 per ounce helped by a slight pullback in the US dollar and treasury yields, even as fears lingered about more hefty Federal Reserve rate hikes to tame soaring inflation. The price settled at $1,657.

Gold rates in Pakistan are around Rs2,600 below the cost compared to the rate in the Dubai market.