Gold price in Pakistan increases by almost Rs5,000 per tola within a week

WEB DESK: In a significant development this week, the domestic gold market experienced a notable surge. The price of 24-karat gold rose sharply by Rs4,950 per tola, reaching Rs213,300. 

According to the latest update from the Karachi Sarafa Association, the closing price of 10-gramme 24-karat gold in today’s session stood at Rs182,870, reflecting a gain of Rs1,714.  

Similarly, 10-gramme 22-karat gold was priced at Rs167,631, showing an increase of Rs1,533 compared to the previous close. 

Meanwhile, the price of silver remained stable throughout the week. Both 24-karat silver and 10-gramme 24-karat silver closed at Rs2,550 and Rs2,186.21, respectively. 

This surge in gold prices can be attributed to the upward momentum in international gold prices and the relatively weaker position of the Pakistani rupee.

International spot gold marked its third consecutive weekly gain, primarily driven by escalating conflicts in the Middle East, particularly the ongoing Israel-Palestine conflict. 

Investors’ interest in safe-haven assets, especially gold, intensified due to the stability and intrinsic value offered by this precious metal.

Consequently, the safe-haven commodity experienced a 1.3 per cent increase over the week, breaching the $2,000 mark for the first time since May. 

Additionally, domestic gold prices received a boost as the Pakistani rupee depreciated further against the US dollar.  

USD-PKR exchange rate

The Pakistani rupee weakened by 1.78 rupees against the US dollar this week, settling the trade at PKR 280.57. Since gold is denominated in US dollars, the weakening of the PKR against the USD led to an increase in the value of PKR-denominated gold.  

This interplay between international market dynamics and local currency fluctuations contributed to the remarkable surge observed in the domestic bullion market this week.