Gold prices ease by Rs4,150 per tola for second week

Gold prices in the country eased by Rs4,150 (-1.79 percent) per tola last week, falling for the second straight week, while gold prices in the international bullion markets surged by 0.67 percent for the second week in a row.

The gold rate in Pakistan for a single tola of 24-karat on a week-on-week (WoW) basis fell to Rs227,250 from Rs231,400, according to the data provided by All Pakistan Sarafa Gems and Jewellers Association. Similarly, the gold rate for 10 grams of 24-karat dipped to Rs194,830 from Rs198,400 on WoW basis, showing a decrease of Rs3,570. The gold price for 22-karat was recorded at Rs208,300 against Rs211,800 per tola a week ag0. Likewise, the gold rate for 10 grams of 22-karat fell to Rs178,600 from Rs181,600.

As far as Pakistan rupee-US dollar parity is concerned, as gold is valued in USD, the local unit depreciated 0.44 percent against the greenback in the interbank market on a week-on-week basis. According to the figures shared by the central bank, the rupee fell from 285.68 to 286.93 against the greenback. Similarly, the rupee fell one percent against the US dollar in the open market, from the range of Rs299-302 to Rs302-305.

The domestic gold market has remained volatile for the last one year due to economic and political turmoil, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge to protect themselves against inflation and currency depreciation.

bal markets, the gold price surged for the second straight week from $1,947.50 to $1,960.70 per ounce, showing an uptick of 0.67 percent. Gold prices fell below $1,950 at the beginning of the week as an impressive May jobs report from the US weighed on the gold prices. However, the US dollar came under selling pressure after a survey revealed a loss of momentum in service sector activity. The downbeat data prompted gold prices to regain traction on Monday and gold closed the day in positive territory.