Despite a drop in consumer demand due to Muharram, the first month of the Islamic calendar, gold prices in Pakistan saw a notable increase for the second day in a row on Thursday.
Data from the All Sindh Sarafa and Jewellers Association (ASSJA) revealed that gold prices rose by Rs1,200 per tola and Rs1,029 per 10 grams, settling at Rs246,800 and Rs211,591, respectively.
It's worth mentioning that every year during Muharram, the local market sees a decline in bullion demand.
The association also highlighted that gold prices in Pakistan are currently "under cost" by Rs2,500 per tola compared to Dubai, indicating that the Pakistani gold market is presently cheaper than the global market.
Silver prices in Pakistan remained steady at Rs2,900 per tola and Rs2,486.28 per 10 grams.
In the international market, gold prices managed to gain despite a stronger dollar and higher bond yields, as investors awaited the US June inflation data expected later this week for more insight into the US interest rate trajectory.
How is gold price determined in Pakistan?
Gold price in Pakistan is announced by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), which determines gold prices in Pakistan for local markets six days a week from Monday to Saturday.
Pakistan is a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the precious metal locally.
Accordingly, the gold rate in Pakistan is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets. The latest price for local markets was determined to keep in view the prices at which trade took place among buyers and sellers.
