Rising inflation once again shifts investors’ attention towards gold.
Silver price falls by Rs30 per tola in Pakistan.
Gold price settles at $1,826 per ounce in international market.
Gold jumped on Thursday, bouncing back from the price shock received a day earlier to trade above the key Rs196,000 per tola level as record-high inflation once again shifted investors’ attention towards the precious commodity.
Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) increased by Rs500 per tola and Rs429 per 10 grams to settle at Rs196,100 and Rs168,124, respectively.
Gold is considered an inflation hedge, but is highly sensitive to rising interest rates, which increase the opportunity cost of holding the non-yielding bullion.
Meanwhile, silver prices in the domestic market fell by Rs30 per tola and Rs25.72 per 10 grams to settle at Rs2,120 per tola and Rs1,817.55 per 10 grams, respectively.
In the international market, gold prices were little changed as traders waited for US growth data for more clues on the pace of Federal Reserve rate hikes and stronger dollar-capped advances. The price settled at $1,826 per ounce after a decline of $14.
Gold remains in a consolidation phase, but a firm GDP figure today would allow the Fed to keep rates higher for longer, which would be dollar positive and by extension weigh on gold, said independent analyst Ross Norman.
The dollar index held near multi-week highs.
However, bullion is probably getting a lift on news that Russia is to suspend its membership of the nuclear arms limitation accord, Norman added.
Gold may test the support of $1,816 per ounce, a break below which could open the way to $1,793, said Reuters technical analyst Wang Tao.
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.
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.
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.