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Gold price hits new life-high of Rs188,600 per tola in Pakistan

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2 years ago

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  • Pakistani gold remains pricier than world markets.
  • Traders see local gold price touching Rs200,000 per tola.
  • Per tola price of silver remains flat at Rs2,150.

Gold was unstoppable on Wednesday too as it nailed yet another life-high with its safe-haven appeal growing stronger amid rupee depreciation and a dollar dearth.

According to All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold soared by Rs900 per tola and Rs772 per 10 grams to reach Rs188,600 and Rs161,694 respectively.

Based on the difference in price compared to the Dubai market, Pakistani gold is pricier than the world markets.

Traders see the gold price touching Rs200,000 per tola due to the rupee devaluation against the US dollar under the current cycle as well as the non-availability of the greenback.

The inflow of $6-8 billion from multilateral and bilateral creditors will burst the gold price bubble in Pakistan, market observers said.

Meanwhile, the price of silver per tola remained flat at Rs2,150. Likewise, the 10-gram silver price was almost unchanged at Rs1,843.27.

Gold prices extended their New Year rally to jump more than 1% and hit their highest since mid-June on Wednesday, helped by a weaker dollar and growing expectations of less aggressive interest rate hikes at upcoming Federal Reserve meetings. 

Spot gold rose 1.2% to $1,862.32 per ounce by 1119 GMT, hitting its highest since June 13. US gold futures also gained 1.2% to $1,868.30.

The dollar index, meanwhile, slipped 0.6%, making gold less expensive for overseas investors. There is some optimism in the market ahead of the release of minutes from the Fed’s December meeting later in the day, Kinesis Money external analyst Carlo Alberto De Casa said. 

“Majority of investors are betting on a 0.25% rate hike in the next Fed meeting, differently from a few weeks ago, when another 0.50% rate was given as almost sure.”

Pakistan’s inflation figures for December were released on Monday, with markets now pricing in a chance the central bank might hike interest rates by a full 50-100 basis points on January 23.

Although gold is considered a hedge against higher inflation and a safe store of value in times of uncertainty, higher interest rates raise the opportunity cost of holding non-yielding bullion.

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Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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