CB News
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KARACHI: Gold prices in Pakistan rose 2% on Saturday as ongoing political unrest clouded the outlook for economic stability that bolsters the appeal of the safe-haven asset.
Data released by the All-Pakistan Sarafa Gems and Jewelery Association (APSGJA) showed that the price of gold (24 carat) increased by Rs 4,100 per tola and Rs 3,516 per 10 grams to set -se in 208,300 rupees and 178,584 rupees.
Cumulatively, for the week ended March 18, the precious commodity gained Rs 9,600, or 4.8%, per tola, as gold barely responded to the rupee’s appreciation Pakistani rupee against the US dollar. He managed to win during all six sessions.
Investors’ risk aversion showed as political tensions sent money into safe-haven assets.
As other markets slide, investors generally find refuge in gold to maintain a low-risk profile.
A likely economic contraction looms over Pakistan amid political and economic uncertainties and a deadlock in reviving International Monetary Fund (IMF) lending.
The price of gold is Rs 11,500 per tola “undercost” in Pakistan, compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global market.
It is likely to shine through the chaos as investors take a cautious stance.
Meanwhile, silver prices in the domestic market rose by Rs 100 per tola and Rs 85.73 per 10 grams to settle at Rs 2,250 per tola and Rs 1,929 per 10 grams, respectively.
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