During the week ending December 24, the gold price in Pakistan increased by Rs4,800 per tola.
Following a significant drop the previous day, gold prices in Pakistan were largely unchanged on Saturday as traders anticipated economic data to provide additional direction.
Data supplied by the All Pakistan Sarafa Gems and Jewellers Association shows that the price of gold increased marginally by Rs200 per tola and Rs172 per 10 kilos to settle at Rs177,500 and Rs152,178, respectively (APSGJA).
Gold had its first significant decline of Rs3,350 per tola to Rs177,300 in Pakistan the day before, snapping a 12-day run of astronomical rises almost every day.
The price of yellow metal increased by Rs4,800, or 2.77%, per tola throughout the course of the week that ended December 24.
The price of bullion in Pakistan has recently decreased on worldwide markets, but local pricing organizations have continued to inflate the price of commodities there despite the metal’s high demand and limited availability.
It should be mentioned that the APSGJA informs the market each day of the gold rates after determining the price by taking into account the rates in global markets, the rupee-dollar exchange rate, and demand and supply in domestic markets.
Since December 1, gold prices have increased by Rs16,300, or 10% a tola, over the course of a few days, prompting questions about whether the price increase is sustainable or represents an unsustainable bubble.
Analysts contend that the recent price increase is the result of the dollar’s unavailability in Pakistan and the growing gap between interbank and open market exchange rates; nevertheless, the existence of black markets for the precious metal has also fueled these claims.
Silver prices fell to Rs 2,020 per tola and Rs 1,731.82 per 10 grammes, respectively, after falling Rs 80 per tola and Rs 68.59 per 10 grammes.
As cautious traders awaited economic data due later in the day to determine the Federal Reserve’s stance on rate hikes, gold prices in the international market were confined to a narrow range in light trading. After a tiny increase of $1 per ounce, prices finally settled at $1,798.