Gold Price in Pakistan Today -12, April, 2023. The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) released data stating that the price of gold (24 carats) dropped by Rs300 per tola and Rs257 per 10 grams to reach Rs218,000 and Rs186,900, respectively.
Rupee gains boost gold drop:
The value of the rupee had been trading at all-time lows over the past few sessions, leading to record-high gold prices in Pakistan. However, the drop in gold prices was in line with the recent appreciation of the rupee, which gained 1.81 or 0.63% to 286.62 against the US dollar in the interbank market.
A hedge against inflation:
Gold is often seen as a hedge against inflation, and investors tend to buy it during economic turmoil. This precious metal’s value typically rises during Ramadan due to increased demand. Nevertheless, the seven-day period that ended on April 6 witnessed weekly inflation increasing 0.92% week-on-week and 44.49% year-on-year as sugar and chicken prices surged due to Ramadan and likely hoarding.
Gold demand bolstered by currency market uncertainty :
As economic tensions continue to rise, investors’ attention has shifted towards gold. The International Monetary Fund (IMF) is currently reviewing external financing commitments from friendly countries before releasing bailout funds, leading to delays in the revival of the program. The delay negatively impacted the currency market, which, in turn, boosted demand for gold.
Gold cheaper in Pakistan than global markets :
The APSGJA also stated that the price of gold in Pakistan is Rs4,000 per tola lower than in the Dubai market, indicating that the Pakistani gold market is currently cheaper than the global market.
Meanwhile, silver prices in the domestic market remain stable at historic highs of Rs2,520 per tola and Rs2,160.5 per 10 grams.
In the international market, gold prices gained $8 per ounce to settle at $2,009.
(Islamabad51-Newsdesk)
