Gold price soars by Rs5,700 per tola

KARACHI: After registering losses over the last five sessions, the price of gold surged by over 4% despite the appreciation of the Pakistani rupee against the US dollar.
The price of gold rose by Rs5,700 per tola and Rs4,887 per 10 grams to settle at Rs139,900 and Rs119,942, data released by All Sindh Sarafa Jewellers Association (ASSJA) showed.
The precious commodity has lost Rs9,300 per tola during the period of August 10 to 15.
Pakistan is a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the commodity locally.
Accordingly, the gold price for local markets is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets.
It should be noted that the gold price is standing below cost. Gold is cheaper by Rs4,000 per tola compared to its price in Dubai.
In the international market, bullion prices recorded a meagre gain of $2 per ounce to settle at $1,777 as investors watched for signs of further policy tightening by the US Federal Reserve
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,540 per tola and Rs1,320.30 per 10 grams today.-PNP