Gold price expands profits in Pakistan

• The price of gold in the local gold market increased by 600 rupees per tola to level off at 124,600 rupees.
• Adnan Agar says the price of gold in the local market is entirely dependent on two factors.
• Gold prices in Pakistan are around 4,000 rupees lower than the cost of gold in the Dubai market.

KARACHI: The price of gold in Pakistan rose on Friday, fueled by concerns about uncertain rupee-dollar parity, which have sparked yet another flight from risky commodities to safer ones.

Gold prices in the local gold market rose from 600 rupees per tola and 514 rupees per 10 grams to level off at 124,600 rupees per tola and 106,824 rupees per 10 grams.

On Thursday, the yellow metal closed at 124,000 rupees per tola and 106,310 rupees per 10 grams.

The precious commodity lost around 7,100 rupees per tola in the period from November 12th to 17th as there were concerns that the state bank would raise its key interest rates.

Speak with Geo.tvAA Commodities Director Adnan Agar said the price of gold in the local market is entirely dependent on two factors.

“Currency movements and international price changes have a significant impact on the price of this precious commodity in Pakistan,” he said.

Meanwhile, the precious metal remained unchanged in the international market as traders caught between concerns about widening inflation risks and the prospect of faster rate hikes, which challenged the attractiveness of bullion as an inflation hedge.

It posted a meager loss of $ 2 an ounce to even out at around $ 1,858.

“Although increased inflation has attracted strong buying interest in gold, expectations of a normalization of monetary policy by the US Federal Reserve and other major central banks amid a strong recovery in growth remain the main headwind for the metal,” said Sugandha Sachdeva, vice president of commodities and currencies research at Religare Broking.

“Gold is likely to consolidate in a range between $ 1,835 and $ 1,880 in the short term. “

It is important to mention that gold prices in Pakistan are around 4,000 rupees below the cost compared to gold prices in the Dubai market.

In addition, the price of silver in the domestic market was unchanged today at 1,440 rupees per tola and 1,234.56 rupees per 10 grams.

– With additional input from Reuters