Gold prices extend gains in Pakistan

• Bullion prices settle at Rs113,500 per tola and Rs97,308 per 10 grams on Thursday
• International gold price decreases by $1 per ounce to $1,772.
• Silver prices remain stable at Rs1,400 per tola and Rs1,200.21 per 10 grams.

KARACHI: Gold gained for the fourth consecutive session on Thursday after the US Federal Reserve meeting.

Bullion prices in the local market gained Rs250 per tola and Rs214 per 10 grams today to reach Rs113,500 and Rs97,308.

Speaking to Geo.tv, a gold dealer said despite an increase in prices, demand for the precious commodity is picking up pace.

He said: “The demand for the yellow metal is slightly improving as the holy month of Safar is coming to an end and the wedding season is drawing close.”

Another dealer, however, said that due to lack of purchasing power, the demand is picking up at an extremely slow pace.

The trader added that investors have started investing in gold once again on speculations of further depreciation in the rupee against the US dollar.

Meanwhile, gold prices in the international market recorded a decrease of $1 to settle at $1,772 as the dollar gave up some gains against other world currencies that were driven by the US central bank signalling faster-than-expected interest rate hikes, but receding fears over the Evergrande crisis limited interest for safe-haven bullion.

Moreover, Fed chair Jerome Powell said that a tapering of stimulus in the US measures was not far away.

Overall, the yellow metal remained stable as Powell didn’t give any firm dates for the beginning of tapering or raising interest rates.

It is pertinent to mention that gold rates in Pakistan are still around Rs1,000 below cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,400 per tola and Rs1,200.21 per 10 grams.