Gold prices in Pakistan rose by 1.2% on Wednesday, crossing the important Rs150,200 mark. These happened because investors were worried about the political situation and were looking for safe investments.
All Pakistan Sarafa Gems and Jewellers Association (APSGJA) data showed that the price of the precious metal went up by Rs1,800 per tola and Rs1,542 per 10 grams to Rs150,200 per tola and Rs128,772 per 10 grams.
Gold is often seen as an alternative investment during political and financial uncertainty. In the last two sessions, the precious metal has gone up Rs3,800 per tola.
The price for local markets is set by considering the price on world markets, the exchange rate between the rupee and the dollar, and the demand and supply in local markets.
On the international market, the price of the yellow metal went up by $24 per ounce, settling at $1,668. This happened because both the dollar and bond yields went down. After all, people thought the US Federal Reserve might slow down the rate at which it raised interest rates.
Gold is affected by rising interest rates because it costs more to hold bullion that doesn’t pay interest when rates go up. Prices for the precious item in Pakistan are about Rs1,000 less than in Dubai.
Silver prices stayed the same on the domestic market at Rs1,580 per tola and Rs1,354.60 per 10 grams.
