The price of gold in Pakistan has experienced a significant surge due to seasonal demand. People are rushing to purchase the yellow metal during Ramadan, which is followed by the wedding season. The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported that the price of gold (24 carats) increased by Rs5,600 per tola and Rs4,801 per 10 grams to settle at Rs207,500 and Rs177,898.
The demand for gold in Pakistan is met almost entirely through imports, and traders follow international prices to set rates in the country. The price of gold moves in line with the rupee-dollar parity, and jewelers import the metal against the US dollar and UAE dirham before converting its price into rupees.
Although the price of gold in Pakistan had registered losses in the previous few sessions, the bullion once again glittered on Friday, following a public holiday on account of Pakistan Day. The international market for gold also experienced gains on Friday, boosted by a slide in Treasury yields after the US Federal Reserve signaled a possible end to its monetary tightening cycle.
The association also reported that the price of gold in Pakistan is currently Rs12,000 per tola “under cost” compared to the Dubai market, indicating that the Pakistani gold market is currently cheaper than the global market. Furthermore, silver prices in the domestic market also gained Rs20 per tola and Rs17.15 per 10 grams at Rs2,220 per tola and Rs1,903.29 per 10 grams, respectively.
In conclusion, the surge in the price of gold in Pakistan is primarily due to seasonal demand during Ramadan and the wedding season. The price of gold in Pakistan is heavily influenced by the rupee-dollar parity, and traders follow international prices to set rates in the country. Additionally, the price of gold in Pakistan is currently cheaper than in the global market, making it an attractive option for buyers.