Gold price per tola increases Rs6,500 in Pakistan amid surge in international rate

Gold prices in Pakistan increased as much as Rs6,500 per tola on Wednesday, as the ongoing Israel-Hamas conflict in the Middle East reportedly increased demand for safe-haven assets in the international market.

On Wednesday, the 24-carat gold was priced at Rs206,000 per tola in Punjab, Balochistan, and Khyber Pakhtunkhwa, while in Sindh it remained at Rs205,000 per tola, according to the rates shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

Pakistan’s bullion market reopened on Tuesday after a month-long hiatus with the price of 24-carat gold witnessing a steep fall of Rs15,500 per tola on the back of rupee’s continuous appreciation against the dollar.

However, a demand boost of safe-haven assets in the international market amid rising geopolitical tensions in the Middle East caused a significant increase in gold rates.

In the international market, the gold rate per ounce on Wednesday was recorded at $1,872, higher by $16 as compared to the previous day, APGJSA said.

It is pertinent to mention that gold prices in Pakistan closely follow trajectory of the US dollar and international rates of the commodity as the country remains a net importer of the precious metal.

Meanwhile, the price of 10 gram gold stood at Rs175,754, after an increase of Rs4,715 on Wednesday.

The silver rates remained unchanged at Rs2,500 per tola.

Bullion market reopens after a month

After nearly a month, the bullion market issued the gold rates in Pakistan on Tuesday, showing a drop of Rs15,500 per tola from the rates last issued on September 12.

The traders had refrained from issuing gold rates as bigwigs continued to discuss ways to keep the market “free from speculation”, following a crackdown from law-enforcement agencies.

Last month, the caretaker government initiated a large-scale crackdown against illegal economic activities such as smuggling and hoarding. It resorted to take action against all those involved in speculations in different markets, which has resulted in some positive outcomes.

Pakistan Army’s top brass also resolved to assist the government “wholeheartedly” in curbing all illegal activities which hamper economic stability, growth, and investors’ confidence, a press release from its media wing Inter Services Public Relations Pakistan (ISPR) stated last month.