Gold price per tola rises in Pakistan

KARACHI: Gold price in Pakistan has witnessed upward trajectory owing to the fluctuating rates in the international market.

According to the All Pakistan Sarafa Gems and Jewellers Association, gold price increased by Rs1,100 per tola, reaching Rs279,400. 

Similarly, the price of 10 grams of gold also rose by Rs943, now standing at Rs239,540. 

The surge in gold price follows fluctuations in the international market, where rates continue to influence local trading trends.

In the international, gold price scaled a four-week peak on Friday and were set for their best week in seven, driven by safe-haven demand amid uncertainty over what policies US President-elect Donald Trump will pursue, while markets awaited jobs data for clues on the trajectory of US interest rates.

Spot gold climbed 0.4% to $2,679.65 per ounce, as of 1250 GMT after hitting its highest level since Dec 13 earlier in the session. Prices have risen by more than 1% this week.

Also Read: Saudi Arabia, UAE lead remittance flows to Pakistan

The most bullish outcome for gold is the narrative of ballooning fiscal deficits and unsustainable debt weighing on the US dollar in the longer term and causing doubts about its role as the world’s reserve currency, said Carsten Menke, analyst at Julius Baer.

Weekly inflation declines in Pakistan

Pakistan’s short-term inflation saw a 0.65 per cent decrease over the past week, according to the Pakistan Bureau of Statistics (PBS). However, when compared to the same period last year, inflation rose by 1.9 per cent.

Out of the 51 essential items monitored during the week, prices increased for 18 items, accounting for 35.29 per cent of the total. Meanwhile, prices for 10 items, or 19.61 per cent, decreased, while 23 items, or 45.10 per cent, remained stable.

Several key items experienced notable price increases during the week, including Pulse Moong, which saw a 2.56 per cent rise, Cooking Oil (5-litre) at 1.56 per cent, Sugar at 1.23 per cent, Chicken at 0.80 per cent, Vegetable Ghee (1kg) at 0.61 per cent, Bread at 0.57 per cent, Vegetable Ghee (2.5kg) at 0.49 per cent, Washing Soap at 0.43 per cent, Garlic at 0.39 per cent, and Firewood at 0.12 per cent.

In contrast, certain items recorded significant price drops, such as Tomatoes, which declined by 31.40 per cent, Potatoes by 10.36 per cent, Eggs by 5.96 per cent, Pulse Gram by 1.64 per cent, and Onions by 0.87 per cent. Rice varieties such as Basmati Broken and IRRI-6/9, along with Pulse Mash and LPG, also saw minor declines in prices.

On a yearly basis, inflation registered an overall increase of 1.90 per cent. The most significant price hikes were observed in items like Ladies’ Sandals, which surged by 75.09 per cent, Potatoes by 58.76 per cent, Pulse Gram by 42.11 per cent, Pulse Moong by 34.15 per cent, Powdered Milk by 25.76 per cent, and Beef by 23.75 per cent.