Gold rate ticks up in Pakistan amid economic uncertainty

• Price of gold increases by Rs400 per tola.
• Silver rates remain stable in local market.
• Gold also steady in international market.

The gold rate in Pakistan edged up for the second consecutive session, dealers said on Saturday, as the safe-haven metal was back in the limelight because the economy was still under a dark cloud.

Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) increased by Rs400 per tola and Rs343 per 10 grams to settle at Rs198,400 and Rs170,096, respectively.

As the Pakistan rupee trades around 269-275 against the dollar in the interbank market, the yellow metal can get much costlier as the nation meets its gold requirements through imports — and the country is already facing a balance of payment crisis.

The data from the APSGJA also showed that local gold is Rs2,000 "overcost" compared to the Dubai bullion market.

Meanwhile, silver prices in the domestic market remained stable at Rs2,160 per tola and Rs1,851 per 10 grams, respectively.

In the international market. gold remained stable at $1,865 as markets awaited next week’s US inflation data that could influence the Federal Reserve’s monetary policy trajectory.

“We will have to see significant and sustained progress on the inflation front before authorities on the monetary side of things will feel comfortable to allow rates to pivot lower,” said Bart Melek, head of commodity markets strategy at TD Securities.