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Gold price falls as international rate continues to fluctuate

Published

2 years ago

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  • Rate of gold declines by Rs1,800 per tola.
  • International rate down by $21 per ounce.
  • Price of silver remains unchanged. 

The rate of gold continued to fluctuate in the international market Thursday, leading to a decline in the safe-haven bullion’s value in Pakistan.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) decreased by Rs1,800 per tola and Rs1,543 per 10 grams to settle at Rs236,000 and Rs202,332, respectively.

Separately, the international rate went down $21 to reach $1,961 per ounce.

International investors have been on edge as uncertainty remains over whether US Democrats and Republicans will be able to reach an 11th-hour agreement on raising the federal debt ceiling.

If the debt ceiling — which is currently capped at $31.4 trillion — is not raised, it would trigger the first-ever US default.

Gold’s value also declined internationally after Federal Reserve officials “generally agreed” that the need for more interest rate increases “had become less certain”, Reuters reported.

Gold, a non-yielding asset, tends to lose appeal in a high interest rate environment.

The gold rate has been volatile in the domestic market due to a number of factors, including economic and political turmoil, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge.

The rupee, which fell to an all-time low of Rs298.93 on May 11, closed at Rs285.74 per US dollar in the interbank market Thursday. It gained Rs1.39 or 0.49% against the US dollar, according to State Bank of Pakistan data.

The jewellers’ body also said that local gold was “overcost” by Rs5,000 per tola in Pakistan compared to the Dubai bullion market. This means that, at present, the Pakistani gold market is more expensive than the world market.

Data shared by the association showed the price of silver remained unchanged at Rs2,900 per tola and Rs2,486.28 per 10 grams, respectively. 

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In interbank trade, the Pakistani rupee beats the US dollar.

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4 days ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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5 days ago

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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Business

The inflation rate in Pakistan dropped to its lowest level.

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5 days ago

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On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.

The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.

Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.

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