KARACHI: Gold prices remained steady on Saturday as investors looked for further clues on rupee depreciation and other economic indicators.
According to the data released by the All Pakistan Sarafa Gems and Jewelers Association (APSGJA), the price of gold rose by Rs 50 per tola and Rs 43 per 10 grams to Rs 147,350 and Rs 126,329 respectively.
Overall, the price of the precious commodity increased by Rs 3,550 per tola during the week ended October 15.
Gold prices seem to be stabilizing. With uncertainty surrounding the November International Monetary Fund (IMF) review and inflation numbers, there is a lull in the market ahead of key event risks.
The commodity is considered a hedge against inflation, but rising interest rates reduce the appeal of unyielding bullion.
Pakistan meets almost all of its gold demand through imports, and traders follow its international price to set prices in the country. Jewelers import the metal against the US dollar and UAE dirham before converting its price into rupees.
In international markets, gold fell $12 an ounce and is headed for its worst week since mid-August, dragged down by a stronger U.S. dollar and fears that the Federal Reserve could rein in inflation. The price will continue with rapid rate increases to $1,644.
The price of the yellow metal is increasingly linked to dollar moves and could fall to $1,600.
The price of gold in Pakistan is about 2600 rupees lower than the price in Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs 1,560 per tola and Rs 1,337.44 per 10 grams.
