24-karat gold price increases by Rs1,600 to Rs242,900 per tola in Pakistan

The price of gold in Pakistan saw a significant increase on Friday, with 24-karat gold reaching Rs242,900 per tola, marking a rise of Rs1,600 per tola. Despite this increase, the price is notably Rs4,500 below its actual cost due to a decline in purchasing power.

The Karachi Sarafa Association reported that the price of 24-karat gold per 10 grammes rose to Rs208,248, an increase of Rs1,372. Similarly, 22-karat gold prices also saw a hike, reaching Rs190,894 per 10 grammes.

In contrast, silver prices remained stable in the domestic market. The price of 24-karat silver stood at Rs2,750 per tola and Rs2,358 per 10 grammes.

On the global market, spot gold was trading near $2,364 an ounce, a modest increase of $3.9 or 0.17 per cent from the previous session. The precious metal is poised for a second consecutive weekly gain, bolstered by softer U.S. economic data that has fueled investor optimism about potential monetary easing.

Thursday’s data showed a moderate decline in first-time applications for U.S. unemployment benefits last week, coupled with a drop in new housing construction. Additionally, retail sales data from the previous month were tepid, all of which have increased the likelihood of a rate cut in September, according to Reuters.

Lower interest rates tend to reduce the opportunity cost of holding non-yielding bullion, making gold a more attractive investment. Meanwhile, China’s yuan fell to a fresh seven-month low against the dollar, further influencing the global economic landscape.