Gold gains its shine back, price rallies by Rs2,200 per tola in Pakistan

Gold gains its shine back, price rallies by Rs2,200 per tola in Pakistan. Gold continued to shine in the local market on Thursday as the price rose by 1.5%, and as a result, investors once again started showing interest in the safe-haven asset.

The gold price rose by Rs2,200 per tola and Rs1,886 per 10 grams to settle at Rs145,900 per tola and Rs125,086 per 10 grams, data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.

Although gold is considered a traditional hedge against economic and other global uncertainties, investors have lately preferred the safety of the dollar amid growing slowdown worries and a high-interest rate environment.

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In the international market, the price of the yellow metal rose by $27 per ounce settling at $1,651 as the dollar resumed its ascent after a brief dip in the previous session, with looming rate hikes still a headwind for the non-yielding bullion.

Gold rates in Pakistan are around Rs2,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices declined by Rs10 per tola and Rs8.58 per 10 grams at Rs1,560 per tola and Rs1,337.44 per 10 grams.

With gold under pressure, silver should also continue to struggle to outperform but a clear positive turn in gold holds considerable risks for silver.