KARACHI: Gold prices in Pakistan ticked up on Monday, in line with international markets, amid another depreciation of the rupee. Traders were hesitant to take any adventurous positions on the day before the central bank’s monetary policy meeting.
According to data from the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) rose by Rs1,200 per tola and Rs1,028 per 10 grams to settle at Rs209,500 and Rs164,645 respectively.
Rupee depreciates against the dollar
The rupee also depreciated 0.44% against the dollar in the inter-bank market on Monday. The State Bank of Pakistan (SBP) reported that the rupee settled at 285.04, a loss of Rs1.25.
Central bank expected to raise policy rate
The SBP is expected to raise the policy rate by 100-200 basis points as inflation is spiralling out of control. Consumer price inflation in Pakistan jumped to a record 35.37% in March from a year earlier. Gold is often considered a hedge against inflation, increasing in value as the purchasing power of the dollar declines.
Inflation soaring in Pakistan
Pakistan’s monthly inflation blew past forecasts in March and soared to a nearly all-time high level of 35.4% from a year earlier, with people feeling more pain from some of the fastest rising consumer prices. The cost of living continues to outstrip average incomes.
Gold bounces back
World gold prices bounced back on Monday as the dollar trimmed its initial gains that were driven by bets that OPEC’s surprise output cuts could jack up global energy prices and force central banks to hike interest rates. Spot gold rose 0.5% to $1,977.43 per ounce by 1206 GMT. U.S. gold futures gained 0.4% to $1,994.50.
Silver prices on the rise
Silver prices in the domestic market rose by Rs80 per tola and Rs68.59 per 10 grams to settle at their all-time highs of Rs2,350 and Rs2,014.47, respectively. However, international prices of silver fell 0.3% to $24.01 per ounce, while platinum was also down 0.3% to $988.60. Palladium rose 0.7% to $1,470.72.
(Islamabad51-Newsdesk)
