Gold rates continue to climb locally despite global market decline

Gold surged by Rs2,500 in the local markets whereas the international bullion market reported a $12 decrease per ounce

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Gold prices in Pakistan have continued their upward trend, even as global rates have seen a decline for the second consecutive day.

On Friday, the price of 24-carat gold in Pakistan increased by Rs200 per tola, pushing the new rate to Rs262,000. The price of 10 grams of gold also saw a rise of Rs172, reaching Rs224,623.

In contrast, the international bullion market reported a $12 decrease per ounce, bringing the global gold price to $2,492 per ounce.

Meanwhile, silver prices in Pakistan remained unchanged, with the per tola price steady at Rs2,950 and the per 10 grams price holding at Rs2,529.14.

This follows a similar trend from the previous day, where local gold prices surged by Rs800 per tola and Rs686 per 10 grams, despite an $8 decrease in the global market.

On August 17, gold spiked Rs2,500 and settled at a new all-time high of Rs260,200 per tola (11.66 grams) on the back of strong demand for the precious metal in global markets over likely depreciation of some of the world's currencies and potential reduction in the US interest rate next month.

According to the All Pakistan Saraf Gems and Jewellers Association, the yellow metal soared $46 to a new record high at $2,507 per ounce (31.10 grams) in the international market.

Despite hitting the historic high in local market, the association said, gold cost Rs4,500 per tola less than the international market in Dubai.

Talking to The Express Tribune, Interactive Commodities Director Adnan Agar said world markets were speculating that bullion may test $2,600-2,700/ounce in the next one month till mid-September 2024.

However, a massive drop in its price cannot be ruled out. Financial institutions, making strong buying of the precious metal, are anticipated to resort to profit-selling after reduction in the US interest rate, potentially in mid-September.