KARACHI: The modest gold market in Pakistan increased its demand for the metal on Monday as the wedding season and other festivals increased demand for the yellow metal.
According to data made public by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of the precious metal dropped by Rs. 1,300 per tola and Rs. 1,115 per 10 grammes to settle at, respectively, Rs. 147,700 and Rs. 126,629 per 10 grammes.
During the week ending October 22, the price of the precious metal decreased by a total of Rs950 per tola.
Globally speaking, Pakistan has a modest market for gold. Since the precious metal is not produced locally, it imports the product to meet demand.
As a result, the price of gold in local markets is established by taking into account its costs in international markets, the rupee-dollar exchange rate, and domestic market demand and supply. The most recent price for local markets was chosen while taking into account the exchange rates between buyers and sellers.
On the physical side, demand for gold increased this week in Pakistan as some customers capitalised on a drop in domestic prices as the wedding season got underway.
The price of gold dropped by $11 per ounce to settle at $1,647 on the international market as the dollar rose and investors searched for signs of a change in the Federal Reserve’s monetary policy, which has so far restrained bullion prices.
The potential cost of storing bullion that doesn’t pay interest increases as interest rates rise, and gold is sensitive to these changes. On Pakistan, the cost of the precious good is about Rs 700 less than it would be in the Dubai market.In the meantime, domestic silver prices held steady at Rs. 1,580 per tola and Rs. 1,354.60 for 10 grammes.