Gold keeps 'pedal to metal' in Pakistan

• Gold price settles at Rs187,300 per tola.
• It gains Rs7,300 per tola in last three trading sessions.
• Silver price remains unchanged at Rs2,100 per tola.

Gold continued to dazzle dollar-averse investors on Saturday — the last trading day of the week — as concerns over sluggish economic growth kept it under the spotlight for its safe-haven appeal.

Data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold soared by Rs1,200 per tola and Rs1,029 per 10 grams to settle at Rs187,300 and Rs160,580.

Cumulatively, the precious metal gained Rs7,300 per tola in the last three trading sessions. 

Gold prices remained volatile during the week, with the precious commodity undergoing correction during the first three sessions; however, it regained its shine. The price rose by Rs2,000 during the volatile week that ended on January 14.

The safe-haven asset last touched its all-time high level of Rs188,600 per tola on January 4 after which the commodity lost traction and remained volatile.

The association reported that the price of gold has been “overcost” by Rs2,000 per tola in Pakistan, as compared to prices in Dubai. This means that, at present, the Pakistani gold market is more expensive than the world market.

It should be noted that majority of the buyers in the local market comprise gold investors these days. Earlier, they were parking their savings in the US dollar to avoid the impact of rupee devaluation at a time of high inflation.

Goldsmiths believe that the investors started moving to the bullion market following the shortfall of the dollar in the open market. In the black market, illegal traders were selling the dollar for Rs270-280 compared to Rs228 in the interbank market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs2,100 and Rs1,800.41.

In the international market, gold price scaled an over eight-month peak, holding above the key pivot of $1,900 per ounce, as cooling US inflation raised hopes for lower interest rate hikes from the Federal Reserve. The price settled at Rs1,920 per ounce after a rise of $20.