Gold edges up in Pakistan for third consecutive session

• Price of gold (24 carats) settles at Rs225,000.
• Int'l price of yellow metal declines to $1,900 per ounce.
• Price of silver remain unchanged at Rs2,750 per tola.

KARACHI: Gold in Pakistan continued to edge up for the third consecutive session on Thursday despite a decrease in the international bullion market. 

According to data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) increased by Rs1,200 per tola and Rs1,029 per 10 grams to settle at Rs225,000 and Rs192,901, respectively.

Meanwhile, the price of the yellow metal also fell by $5 to settle at $1,900 per ounce in the international market today.

Gold hovered around a five-month low internationally after data pointed to a resilient US economy and raised prospects that the Federal Reserve may hike interest rates once more this year.

“Gold is being hit by a perfect storm with multiple negative factors arguably feeding on itself, which is self-reinforcing,” said independent analyst Ross Norman.

A stronger dollar makes gold more expensive for overseas buyers, and higher yields also weigh on non-yielding bullion.

“In short, the gold market has been rattled,” Norman said, adding “Whether the Fed actually carries through with a further rate hike in September is immaterial for gold as the damage has been done.”

The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, and high inflation. People prefer to buy this precious commodity in such times as a safe investment and a hedge.

In the last three sessions, the rates of the precious commodity gained Rs3,200 per tola in the local market. 

Data shared by the association showed the price of silver remained unchanged at Rs2,750 per tola and Rs2,357.68 per 10 grams, respectively.