Gold price increases to Rs221,200 per tola in Pakistan

In a significant turn of events on the first trading day of the week, gold prices in Pakistan continued their upward trajectory, witnessing a surge of Rs900 per tola to reach Rs221,200.

According to the latest data from the Karachi Sarafa Association, the price of 10-gramme 24-karat gold experienced a notable increase, rising to Rs189,643 per tola, reflecting a gain of Rs771.

Similarly, the 10-gramme 22-karat gold was noted at Rs173,840 per tola.

In contrast, silver prices remained unchanged today, with 24-karat silver holding steady at Rs2,600 per tola and Rs2,229 per 10-gramme.

Last week, the local market experienced a substantial boost in gold prices, witnessing a surge of Rs5,200 per tola for 24-karat gold.

This surge is closely linked to the international market rally, with international spot gold reaching a two-month peak on Friday.

The boost in international spot gold was attributed to strengthened expectations of a rate cut by June, driven by economic data from the United States.

The data indicated a slump in manufacturing activity, while price data aligned with market expectations. This led to a decline in the dollar, resulting in gains for the safe-haven asset.

Presently, international spot gold is trading at $2,086.62, reflecting a gain of $3.76, or 0.2 per cent, day-on-day, further impacting the domestic gold market positively.

In parallel with economic developments, the Pakistani rupee (PKR) saw a marginal depreciation of 7 paisa against the US dollar in Monday’s interbank session.

The currency settled the trade at PKR 279.26, compared to the previous day’s closing of PKR 279.19 per USD.

During the intraday session, the local unit reached a high (bid) of 279.6 and a low (ask) of 278.95. In the open market, exchange companies quoted the dollar at 279.41 for buying and 282.05 for selling.

It is noteworthy that the Pakistani rupee closed last week with a gain of 17 paisa week-on-week against the US dollar, showcasing some resilience in the face of external economic fluctuations.