Gold price in Pakistan increases to Rs213,000 per tola

KARACHI: On the last day of the ongoing month, October 31, gold prices in Pakistan saw a considerable increase. The price of 24-karat gold rose by Rs900 per tola, reaching Rs213,000.

The Karachi Sarafa Association reported that 10-gramme 24-karat gold closed at Rs182,613, marking a gain of Rs771. Additionally, 10-gramme 22-karat gold was priced at Rs166,688 in Pakistan.

The boost in gold rate in Pakistan was influenced by the rise in international gold prices. Currently, international spot gold is trading at $1,997.56, showing a 0.07 per cent increase for the day.

This uptick in global prices has positively impacted the local bullion market.

Investors have been closely monitoring the Israel-Palestine conflict, which has heightened interest in safe-haven assets, particularly gold.

Gold, known for its stability and intrinsic value, remains a preferred choice among investors during uncertain times.

Furthermore, market focus this week is centered around the upcoming US Federal Reserve’s monetary policy decision scheduled for Wednesday, followed by the US monthly jobs report on Friday.

Read more: SBP announces to keep policy rate unchanged at 22% amid rising inflation

Analysts, including Kelvin Wong, senior market analyst for Asia Pacific at OANDA, anticipate that Fed Chair Jerome Powell will maintain a data-dependent approach regarding the trajectory of the Fed funds rate. There are expectations for one last interest rate hike in December.

The local gold market was also influenced by the weakening Pakistani rupee (PKR) against the US dollar. It is noteworthy that the PKR experienced its sixth consecutive trading session of losses against the US dollar.

As gold is denominated in US dollars, a depreciation of the PKR against the US dollar leads to an increase in the value of PKR-denominated gold. This factor further supported the rise in local gold prices.