KARACHI: Gold prices in Pakistan rose about 1.1 percent on Monday as an under pressure US dollar turned investors’ attention to safe havens.
According to the data released by All Pakistan Sarafa Gems and Jewelers Association (APSGJA), gold price per tola increased by Rs 1750 and Rs 1500 per tola to Rs 161,300 and Rs 138,288 respectively.
Despite the surprise increase in interest rates by the State Bank of Pakistan (SBP), the price of gold increased due to the ongoing economic crisis in the country.
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.
Gold prices rose $4 an ounce to settle at $1,759 an ounce in the international market – off a one-week high – on some safe-haven amid a weaker US dollar and protests in several Chinese cities across the country. Demand for shelters helped. Strict COVID-19 prevention.
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 remained unchanged at Rs 1,710 per tola and Rs 1,466.04 per 10 grams respectively.
