KARACHI: On Saturday, gold prices rose for a third straight session, reclaiming the ground they had lost earlier in the week as Pakistani inflation data put pressure on economic indicators and the rupee index.
All Sindh Sarafa Association data revealed that the price of gold in Pakistan increased by Rs. 1,700 per tola and Rs. 1,457 per 10 kilos to settle at Rs. 145,700 and Rs. 124,914, respectively.
Due to the increasing rupee at the start of the week, the gold market lost some of its lusters; but, as the dollar strengthened in recent days, it once again sparkled. Gold prices rose, however, as the local currency started to decline again.
In the previous three sessions, the price of yellow metal increased by a total of Rs6,700 per tola (Thursday-Saturday). Nevertheless, during the week ending September 3, it dropped Rs1,300 per tola.
Although rumors about rising interest rates and the strengthening of the rupee reduce gold’s appeal by raising the opportunity cost of owning the non-interest-bearing commodity, gold is nevertheless regarded as a hedge against skyrocketing inflation and uncertainties.
The price of yellow metal increased $8 per ounce to settle at $1,714 on the international market as the dollar declined after US jobs data mainly matched forecasts.
However, the dollar was still headed for a third straight weekly decline under pressure from a high-interest rate environment.
It should be mentioned that the price of gold is below cost and is $4,00 less per tola than Dubai.
The cost of silver in the domestic market today remained constant at Rs1,480 for a tola and Rs1,268.86 for a gram.
The final price of gold is Rs145,700 per tola.
However, during the week ending September 3, it lost Rs1,300 per tola.
In the domestic market, silver prices are stable.