Gold price jumps higher in Pakistan as global rates rise
Gold price rises in Pakistan
The price of 24-karat gold increased to Rs437,536 per tola on Monday, according to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The rate was Rs436,336 per tola on Saturday. The latest increase shows that gold prices remain highly volatile in the local market.
The price of 10 grams of gold also increased by Rs1,029 and reached Rs375,116.
The latest move comes just after gold recorded a sharp decline. The price had fallen by Rs4,300 per tola on Saturday, making the latest increase more noticeable for buyers and investors.
International gold prices also rise
Gold also gained value in the international market.
The global price increased by $12 per ounce to reach $4,150. Reuters reported that spot gold was trading near $4,153.56 per ounce on Monday.
Market analysts linked some of the support for gold to weaker-than-expected US jobs data.
The data reduced expectations of a Federal Reserve interest rate hike in October. This development can support gold because the precious metal does not pay interest.
When expectations for higher interest rates decline, the cost of holding gold can become less attractive compared with interest-bearing assets. This can increase demand for bullion.
Silver reaches new record
Silver prices also moved higher in Pakistan, adding another major development to the precious metals market.
The price of silver increased by Rs66 per tola and reached Rs6,588.
Business Recorder reported that the latest silver price was a new all-time high in the local market.
The rise in both gold and silver prices has attracted attention from investors, traders and jewellery buyers.
Also Read: Saudi Arabia cuts November oil prices for Asia
What could happen next?
Local precious metal prices often react to movements in international markets. Changes in global gold prices can therefore quickly affect rates in Pakistan.
With international gold remaining above the $4,000-per-ounce level, buyers are closely watching the market for further changes.
The recent movement also shows how quickly prices can change. Gold dropped sharply on Saturday before recovering part of its value on Monday.
Jewellery buyers may therefore continue to face changing rates as the international market remains uncertain.
