Gold edges lower in Pakistan amid international rout
- Gold price in Pakistan settles at Rs220,200 per tola.
- Price of silver loses Rs50 per tola.
- Yellow metal falls by $15 in international market.
KARACHI: Gold prices in Pakistan edged lower on Thursday after the commodity in the international market witnessed a decline while the rupee also made gains against the dollar.
According to data issued by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) lost Rs2,800 per tola and Rs2,401 per 10 grams to settle at Rs220,200 and Rs188,786, respectively.
Meanwhile, the price of the yellow metal fell by $15 to settle at $1936 per ounce in the international market today.
It steadied after data showing a deterioration in euro zone business activity triggered some safe-haven inflows, but held near three-week lows on a stronger dollar and higher bond yields.
“Gold is in one of those modes where it seems to be taking the stairs up, but the escalator down,” said independent analyst Ross Norman. “The immediate outlook for gold is negative, but not outrageously, so dips are also seen as good buying opportunities”.
The yellow metal fell 0.5% on Wednesday after stronger-than-expected US private payrolls data gave the Federal Reserve more room to hike rates to cool inflation, sending the dollar to a near four-week high and 10-year Treasury yields to a nine-month peak.
The precious commodity has gained Rs8,000 per tola in the month of July in the local market.
The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, and high inflation. People prefer to buy gold in such times as a safe investment and a hedge.
Data shared by the association showed the price of silver prices also declined by Rs50 and Rs48.86 to settle at Rs2,750 per tola and Rs2,357.68 per 10 grams, respectively.