KARACHI: Gold prices in Pakistan rose on Tuesday as the depreciation of the rupee boosted the precious metal’s appeal in local and international markets.
According to the data released by the All Pakistan Sarafa Gems and Jewelers Association (APSGJA), the price of gold per tola increased by Rs 300 and Rs 258 per 10 grams to Rs 161,600 and Rs 138,546 respectively.
While a slightly weaker rupee is currently supporting gold, interest rate hikes weighed on gold prices, limiting gains.
Gold is considered a hedge against high inflation and a safe store of value in times of economic and political uncertainty.
However, higher interest rates increase the opportunity cost of holding unproductive metal, which limited today’s gains.
Gold prices in the domestic market are heading towards the highest level of Rs 162,500 per tola recorded on July 28.
International gold prices fell $3 an ounce to $1,756 an ounce following sharp comments from Fed officials James Bullard and John Williams.
The prices of precious items in Pakistan are about Rs 2,000 lower than the price in the Dubai market.
Meanwhile, silver prices in the domestic market rose by Rs 30 per tola and Rs 25.72 per 10 grams to close at Rs 1,710 and Rs 1,491.76 respectively.
