Gold prices, rupee value appreciate

Precious metal surges Rs2,200/tola; rupee gains 8 paisa vs dollar

KARACHI:

Gold prices in Pakistan rose on Friday, following the increase in international rates. In the local market, the price of gold per tola surged by Rs2,200, reaching Rs276,900.

Similarly, the price of 10-gram gold rose by Rs1,886, settling at Rs237,397, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Thursday, the price of gold per tola had increased by Rs1,100 to Rs274,700.

Internationally, gold prices also saw a rise on Friday. According to APGJSA, the international price stood at $2,657 per ounce, with a $20 premium and marking a $22 increase for the day.

Adnan Agar, Director of Interactive Commodities, provided an update on the gold market, noting that the price of gold recently reached a high of $2,565 and a low of $2,540, with current prices hovering around $2,542 to $2,543.

He highlighted that next week will be significant for the market, as a range of economic data will be released by the US. With the holiday season coming to an end, Agar anticipates a positive shift in the market from next week onwards, predicting better movement and a more favourable market mood.

At present, the gold market is experiencing small fluctuations, with movements of $20 at a time. However, Agar expects more significant movements to begin soon. He also mentioned that the market is likely to remain volatile next week as economic events unfold.

Meanwhile, the Pakistani rupee saw a slight improvement against the US dollar on Friday, appreciating by 0.03% in the inter-bank market. At the close of trading, the rupee stood at 278.56, marking a gain of eight paisa against the greenback, compared to 278.64 on Thursday, according to the State Bank of Pakistan (SBP).

Zafar Paracha, Secretary General of the Exchange Companies Association of Pakistan (ECAP), noted that the overall stability of the rupee can be attributed to the SBP's new framework aimed at enhancing exchange company operations and curbing illegal trade.

He highlighted several positive outcomes of the framework, including narrowing the rate gap, boosting remittances, controlling inflation, strengthening the economy, stabilising exchange rates, and promoting financial inclusion.

Meanwhile, the US dollar was poised for its best weekly performance in over a month, supported by expectations of fewer Federal Reserve rate cuts this year and the belief that the US economy will continue to outperform other global economies.