Gold gains Rs350 per tola as soaring inflation lifts appeal
Gold rates rises by Rs350 per tola to Rs130,350. Price of 10-gram gold settles at Rs111,754. Silver prices in the domestic market remain unchanged.
Business Reporter
KARACHI: Gold price in Pakistan recorded gains on Wednesday after a massive plunge of Rs4,300 per tola in the last three sessions as sentiments improved in the international market after the Russia-Ukraine conflict boosted demand for safe-haven bullion while investors also bought it as a cushion against soaring inflation.
Gold price in Pakistan gained Rs350 per tola and Rs300 per 10 grams to settle at Rs130,350 and Rs111,754.
Commodities Director Adnan Agar said that the recent plunge in rupee price came on the back of an improvement in rupee-dollar parity.
“While today increase came on the back of improved sentiments in the international market,” he said, mentioning that global gold price gained because of soaring inflation in the US.
In the international market, bullion prices soared by $22 per ounce to settle at $1,977.
Gold analysts believe that safe-haven bids due to the Ukraine crisis and inflation concerns are supporting gold in the international market. Moreover, international prices could revisit $2,000 an ounce in the next few days.
However, Agar noted that the precious commodity will undergo correction after crossing the threshold of $2,000.
Gold rates in Pakistan are around Rs5,000 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,520 and Rs1,303.15 today.
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