Gold extends rally, adds another Rs5,100

Metal gains Rs26,400/tola in three days, reflecting global trend

KARACHI:

Pakistan's bullion market extended its winning streak on Friday as prices rose further, mirroring movements in the international market, where gold hit a seven-week high on increased investor appetite for the precious metal.

In the local market, the per-tola price surged by Rs5,100 to close the day at Rs454,336. Similarly, the 10-gram rate rose by Rs4,372 and reached Rs389,519. Silver, too, increased by Rs280 to Rs6,939 per tola.

In the past three days, the price of gold per tola has shot up Rs26,400, influenced by fluctuations in global markets, where investors were closely watching the evolving Middle East situation, oil price changes and key US employment and other data. Currency movements also have had their impact on the metals market.

Internationally, gold surged on Friday, hitting its highest in seven weeks, after an unexpected drop in US non-farm payrolls for July dashed rate-hike hopes and set bullion on course for its best week in seven months, Reuters reported.

It added that spot gold jumped 2.4% to $4,341.69 per ounce by 1457 GMT, having risen over 3% to its highest since June 17. Non-farm payrolls in the United States decreased by 23,000 jobs last month after a downwardly revised 20,000 increase in June, the Bureau of Labour Statistics said.

Meanwhile, the domestic currency market registered a further marginal daily appreciation of the rupee against the US dollar. The Pakistani rupee stood at 277.71 to a dollar, up one paisa compared to the previous close at 277.72/$.