Gold rate in Pakistan slips from an all-time high recorded yesterday in what analysts termed as “correction”.
Data from the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) indicated a significant drop in gold prices, with a decrease of Rs3,000 per tola and Rs2,572 per 10 grams, bringing the prices down to Rs251,000 and Rs215,192, respectively.
A day earlier, the gold price touched an all-time high of Rs254,000 per tola in the local market as international investors opted for heavy positions in anticipation of the US central bank cutting interest rates in September 2024.
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The association noted that gold prices in Pakistan are currently Rs1,600 per tola lower than those in Dubai, indicating that the Pakistani gold market is cheaper than the global market at this time.
Silver prices in Pakistan declined by Rs55 per tola and Rs50 per 10 grams to settle at Rs2,850 per tola and Rs2,443.41 per 10 grams, respectively.
In the international market, the gold prices fell on Friday, but were on track for a fourth straight weekly gain as expectations that the Federal Reserve will cut interest rates in September lifted bullion's appeal.
Spot gold was down 0.8% to $2,425.48 per ounce by 0511 GMT. It has risen 0.6% so far this week, and hit an all-time high of $2,483.60 on Wednesday.
Kelvin Wong, OANDA's senior market analyst for Asia Pacific, mentioned that while there is some profit-taking in gold at the moment, the medium-term outlook remains positive due to political uncertainty and the anticipation of upcoming rate cuts.
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 minor player in the global gold market, relying on imports to satisfy its demand for the precious metal, as it does not produce gold domestically.
The gold rate in Pakistan is established by considering global market prices, the rupee-dollar exchange rate, and domestic supply and demand. The most recent local market price was set based on the trading prices between buyers and sellers.
