On Wednesday, gold prices increased once more as the rupee suffered from the delay in the restart of the International Monetary Fund (IMF) programme and some bets were placed on increased physical demand from consumers of metal.
The price of gold (24 carats) increased by Rs 2,300 per tola and Rs 1,973 per 10 kilos to settle at Rs 207,900 and Rs 178,241, according to data made public by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).
Before disbursing rescue funds, the IMF wants friendly nations to satisfy their external financing commitments. But, the delay hurt investor confidence in the currency market, which increased demand for gold.
Due to the fact that the nation imports the majority of the gold it needs and that dealers base their prices on the worldwide price of gold, the price of gold fluctuates in accordance with the rupee-dollar exchange rate.
The metal is imported by jewellers, who first exchange its value into US dollars and UAE dirhams.
Also, a rise in seasonal demand fueled the local bullion market’s price increases. In two sessions, the price of the precious metal increased by Rs3,300 per tola (Tuesday-Wednesday).
In addition, the group said that the price of gold in Pakistan is Rs 9,000 per tola “undercost” when compared to the Dubai market, demonstrating that the Pakistani gold market is now more affordable than the international one.
In the meantime, the cost of silver in the domestic market remained constant at Rs. 2,250 for a tola and Rs. 1,929 for a gramme.
While investors slowly re-entering riskier assets, the per-ounce price in the international market rose by $10 to $1,967, indicating that for the time being, the risk of contagion from the global banking crisis has been contained.