On Saturday, gold prices rebounded on a positive note after an abrupt drop the previous day shook the local bullion market, closing the week on a higher note.
The price of 24 karat gold per tola rose by Rs. 15,000, according to the All Pakistan Sarafa Gems and Jewellers Association (APGJSA). 2,400 to settle at Rs. 424,236. The price of 10 grams 24-karat gold also showed an upward trend, increasing by Rs. 2,057 to close at Rs. 363,713, while 10 grams of 22-karat gold gained Rs. 1,885 to reach Rs. 333,415.
The recovery comes after a checkered Friday when local gold dipped Rs. It paid Rs. 3,600 per tola to purchase. 421,836, with the 10-gram rate sliding by Rs. 3,086 to Rs. 361,656.
The rebound was along with a wider recovery in the international bullion market, in which gold rose $24 an ounce to $4,018, with the usual $20 premium. Silver moved higher abroad as well and gained $0.41 to finish at a price of $55.91 perounce; silver per tola touched Rs. 41 to Rs. 6,070, with 10 grams of silver up Rs. 36 to Rs. 5,204.
Analysts said the rally was the result of traders factoring in rising Middle East tensions and concerns that US interest rates may remain higher for longer. Gold is also a traditional safe-haven asset, so it can attract new buyers when geopolitical tensions increase, as investors seek to protect their portfolios from potential volatility in the energy markets and global economy.
Analysts also noted that the international price trends of gold and the devaluation and revaluation of the rupee against the US dollar are still two factors influencing its trading in Pakistan. The rupee has been devaluing and international gold prices have also been going up in tandem, which is exactly what happened Saturday.
As the week ends on a positive note for gold investors, the focus is now on how the global markets open up next week, as both Middle East tensions are likely to ease or further intensify, and the US Federal Reserve’s rate outlook will set the tone for the local market’s next direction in the gold.
