Gold prices reversed course and turned negative on Saturday; however, historic high inflation worries and lingering economic risks clipped losses.
Gold values
According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 diamonds) fell by Rs400 per tola and Rs343 per 10 gramme to Rs208,300 and Rs178,584, respectively.
Despite gaining Rs4,100 per tola in the previous four sessions, the precious commodity gained Rs2,600 per tola cumulatively during the week concluding April 1. (Tuesday-Friday). In March, it earned Rs14,300, or 7.35%, per tola.
During the week, investors’ focus moved to the precious metal as economic tensions remained high and the International Monetary Fund (IMF) reviewed external financing pledges from friendly countries before releasing bailout funds.
The delay in resuming the programme has had a negative effect on the currency market, which has increased demand.
The price moves in tandem with the rupee-dollar parity because the country imports almost all of its gold, and traders establish domestic rates based on the international price.
Jewellers buy the gold in US dollars and UAE dirhams before converting it to rupees. Furthermore, an increase in yearly demand fueled price increases in the local bullion market.
The association also stated that the price of gold in Pakistan is Rs8,000 per tola “undercost” when compared to the Dubai market, indicating that the Pakistani market is presently cheaper than the global market.
Meanwhile, domestic silver prices stayed unchanged at Rs2,270 per tola and Rs1,946.15 per 10 grams, respectively.
In the international market, the price of an ounce of gold fell $12 to close at $1,969, but it was on track for a second straight quarterly gain as investors flocked to the metal as expectations that the US Federal Reserve will slow the pace of interest rate increases grew.
Bullion has gained more than 8% this quarter and was on track to have its best month since November 2022.
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