2021-10-01 07:54:00
- Bullion price settles at Rs114,100 per tola on Friday.
- Dealers believe that despite lack of purchasing power, the demand for the precious commodity will increase due to the wedding season.
- Gold rates in Pakistan are around Rs1,500 below cost compared to the gold rate in the Dubai market.
KARACHI: Gold prices rose above the key level of Rs114,000 per tola on Friday, as a buoyant dollar made bullion more expensive for holders of local currency, while investors await clues from the State Bank of Pakistan (SBP) on their forex intervention measures.
Gold prices in the local bullion market gained Rs600 per tola and Rs514 per 10 grams on Friday to reach Rs114,100 per tola and Rs97,822 per 10 grams amid rising prices in the international markets.
The precious commodity closed at Rs113,500 per tola and Rs97,308 per 10 grams on Thursday.
The international gold price rose by $31 per ounce to $1,754 today as the dollar firmed on bets for interest rate increases and bullion still held above the pivotal $1,750 technical support level en route to a small weekly gain as worries about rising inflation and growth hurt risk sentiment.
Earlier, speaking to Geo.tv, gold dealers said that with the wedding season drawing close, the demand for the yellow metal is slightly improving in the domestic market.
The dealers believe that despite lack of purchasing power, the demand for the precious commodity will increase due to the wedding season.
According to Reuters, gold has had a phenomenally strong week, considering the strong moves in the dollar and yields, the “normal negative drivers.”
However, it is pertinent to mention that the gold rates in Pakistan are around Rs1,500 below cost compared to the gold rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,400 per tola and Rs1,200.27 per 10 grams.
— With additional input from Reuters