KARACHI: Gold rates in Pakistan moved up by more than Rs2,000 per tola on Thursday following positive developments in the international market.
According to data issued by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) gained Rs2,600 per tola and Rs2,230 per 10 grams to settle at Rs224,700 and Rs193,644, respectively.
Meanwhile, the price of the yellow metal increased by $3 to settle at $1,756 in the international market today with the commodity hovering near a one-week high as the dollar slipped on renewed expectations that an end to the Federal Reserve’s interest rate cycle was on the horizon, with focus on the European Central Bank’s impending decision.
Gold benefited from a softer dollar as the Fed toned down its hawkish stance, but uncertainty around future rate increases left bullion a little vulnerable, said independent analyst Ross Norman.
The Fed raised rates by a quarter of a percentage point on Wednesday and Chair Jerome Powell said inflation was yet to “credibly” return to its 2% target.
The dollar index hit a one-week low on bets that the Fed may have delivered its last rate hike. Rising interest rates increase the opportunity cost of holding non-yielding bullion.
“US economic data outcomes have tended to surprise higher in recent weeks, which points to surprise risk being skewed to the upside,” said Ilya Spivak, head of global macro at Tastylive.
“Gold may struggle in such a scenario as markets upgrade the probability of one more hike this year.”
The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, and high inflation. People prefer to buy gold in such times as a safe investment and a hedge.
Data shared by the association showed the price of silver remained unchanged at Rs2,750 per tola and Rs2,357.68 per 10 grams.