- Gold prices in Pakistan rose on Wednesday after a slight decline the previous day.
- The APSGJA reported gold rates at Rs 253,500 per tola and Rs 217,335 per 10 grams.
- Silver prices in Pakistan increased to Rs 2,900 per tola and Rs 2,486.28 per 10 grams.
Gold prices in Pakistan saw a modest increase on Wednesday, pausing after a slight decline the previous day, mirroring international market trends.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the gold rate in Pakistan rose by Rs 1,200 per tola and Rs 1,092 per 10 grams, settling at Rs 25,500 per tola and Rs 217,335 per 10 grams, respectively.
Earlier in July, gold prices reached an all-time high of Rs 254,000 per tola in the local market, driven by heavy investor interest anticipating a potential interest rate cut by the US Federal Reserve in September 2024. Despite this peak, the trend of gold rates in Pakistan has remained relatively stable.
The APSGJA noted that the current gold prices in Pakistan are competitively priced compared to international markets, particularly Dubai, suggesting favorable conditions for buyers in the local market.
In parallel, silver prices in Pakistan also saw an uptick, rising by Rs40 per tola and Rs28.30 per 10 grams, closing at Rs2,900 per tola and Rs2,486.28 per 10 grams, respectively.
Internationally, gold prices climbed approximately 1%, buoyed by investor optimism surrounding potential hints from the US Federal Reserve regarding interest rate cuts during its policy meeting this week. As of 1747 GMT, spot gold was up 0.8% at $2,403.47 per ounce, while US gold futures settled 1% higher at $2,451.9.
Phillip Streible, Chief Market Strategist at Blue Line Futures, attributed the rise in gold prices to economic uncertainties in Europe and anticipated rate cuts by both European and US central banks.
How Gold Prices are Determined in Pakistan
The determination of gold prices in Pakistan is overseen by the APSGJA, which sets prices six days a week from Monday to Saturday. Being a net importer of gold, Pakistan’s local prices are influenced by global market rates, exchange rates between the Pakistani rupee and the US dollar, and local supply and demand dynamics.
The APSGJA adjusts gold prices based on prevailing international rates and local market conditions, ensuring that prices reflect recent trading activities and maintain competitiveness within the region.
