- The gold price increased in Pakistan by Rs1,000 per tola.
- Demand for gold has increased due to the upcoming wedding season.
- Pakistani gold prices are Rs3,000 per tola lower than in Dubai.
The gold price in Pakistan surged on Thursday, with the precious metal recording an increase of Rs1,000 per tola and Rs857 per 10 grams. By the end of the day, gold was priced at Rs243,300 per tola and Rs208,590 per 10 grams.
Increased Demand Despite Muharram
Local dealers attributed the rise in gold prices to the wedding season, which is set to commence immediately after the Islamic months of Muharram and Safar. Despite only a few days remaining until Muharram, demand for gold has already increased.
Comparison with the International Market
The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported that the price of gold in Pakistan is currently “under cost” by Rs3,000 per tola compared to Dubai. This indicates that the Pakistani gold market is currently less expensive than the global market.
Silver prices are steady.
Silver prices in Pakistan remained unchanged, holding steady at Rs 2,850 per tola and Rs 2,443.41 per 10 grams.
Global Market Trends
In the international market, gold prices saw a significant rise, climbing more than 1% to a near two-week high. This increase was driven by heightened expectations for a September interest rate cut by the Federal Reserve, following recent US data indicating a softening labor market.
Spot gold increased by 1.2%, reaching $2,357.06 per ounce by 02:08 a.m. ET (1808 GMT), while US gold futures settled 1.5% higher at $2369.40. The US dollar slipped to a two-week low, making gold more attractive to holders of other currencies, and the yield on the benchmark US 10-year Treasury note decreased.
Determining gold prices in Pakistan
The gold price in Pakistan is set by the APSGJA, which announces local market prices six days a week, from Monday to Saturday. As Pakistan does not produce gold locally, it relies on imports to meet demand. Consequently, the gold rate in Pakistan is influenced by global market prices, the rupee-dollar exchange rate, and domestic demand and supply. The latest local market prices reflect the trading prices among buyers and sellers.
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The current rise in gold prices, combined with the seasonal demand for weddings, indicates a strong market trend, with local prices still comparatively lower than international rates, presenting potential buying opportunities for consumers.
