KARACHI: The gold price in Pakistan surpassed important threshold of Rs148,000 per tola on Monday in line with the price movement in the international market.
Rates released by All Sindh Sarafa Association — which determines local prices based on rupee-dollar parity and international rates — reported that the price of gold surged by Rs2,400 per tola and Rs2,258 per 10 grams to settle at Rs148,100 and 126,972.
The safe-haven asset regained its shine last week due to fluctuations in rupee-dollar parity. Cumulatively, the price of yellow metal soared by Rs9,100 per tola in the last four sessions (Thursday-Monday).
Gold is considered a hedge against soaring inflation and uncertainties, but speculations of rising interest rates and the rupee’s appreciation dampen its appeal by increasing the opportunity cost of holding the non-interest-bearing asset.
In the international market, gold prices held above the key $1,700 per ounce level on Monday, as hopes that the Federal Reserve might slow the pace of rate hikes after mixed US jobs data helped offset pressure from a robust dollar.
Fed’s next policy meeting is scheduled for September 20-21.
It should be noted that the gold price stands below cost and is cheaper by Rs4,000 per tola compared to Dubai.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,480 per tola and Rs1,268.86 per 10 grams today.