- Pakistani gold is expensive compared to international markets.
- Traders are seeing local gold prices touching Rs 200,000 per tola.
- Silver price per tola remains unchanged at Rs 2150.
to sleep It was unstoppable on Wednesday as it hit another lifetime high with its safe-haven appeal strengthening amid a depreciating rupee and weaker dollar.
According to the All Pakistan Sarafa Gems and Jewelers Association (APSGJA), gold prices rose by Rs 900 per tola and Rs 772 per 10 grams to Rs 188,600 and Rs 161,694 respectively.
Based on price differential compared to Dubai market, Pakistani gold is more expensive than global markets.
At present, the depreciation of the rupee against the US dollar as well as the non-availability of gold has pushed the price of gold to traders to touch Rs 200,000 per tola. Greenback.
Market observers said the $6-8 billion inflow from multilateral and bilateral lenders would burst the gold price bubble in Pakistan.
Meanwhile, silver price remained steady at Rs 2150 per tola. Similarly, 10 grams of silver remained unchanged at around Rs 1,843.27.
Gold prices extended their New Year’s rally by jumping more than 1 percent to hit their highest level since mid-June on Wednesday, helped by a weaker dollar and less aggressive interest rates at upcoming Federal Reserve meetings. Expectations of increase in
Spot gold rose 1.2% to $1,862.32 an ounce by 1119 GMT, the highest since June 13.
Meanwhile, the dollar index fell 0.6 percent, making gold less expensive for overseas investors. Carlo Alberto De Casa, an outside analyst at Kinesis Money, said there was some optimism in the market ahead of the release of minutes from the Fed’s December meeting later in the day.
“The majority of investors are betting on a 0.25% rate hike at the next Fed meeting, unlike a few weeks ago, when another 0.50% rate was almost certain.”
With Pakistan’s inflation data for December released on Monday, markets are now pricing in the possibility that the central bank could hike interest rates by a full 50-100 basis points on January 23.
Although gold is considered a hedge against high inflation and a safe store of value in times of uncertainty, high interest rates increase the opportunity cost of holding unproductive bullion.