Gold price up in Pakistan despite recovery of the rupee
Gold rebounded on Thursday as bargain hunting continued after prices fell a day earlier in response to the Pakistani rupee’s continued recovery against the US dollar.
Data released by the All-Pakistan Sarafa Gems and Jewelers Association (APSGJA) showed that the price of gold (24 karat) rose by Rs500 per tola and Rs429 per 10 grams to stand at Rs196,100 and Rs168,124 , respectively.
Gold is considered a hedge against inflation, but it is very sensitive to rising interest rates, which increases the opportunity cost of holding non-performing bullion.
Cumulatively, the yellow metal has earned Rs3,800 per tola in the last three sessions (Monday-Wednesday); however, the precious commodity ended his winning streak today.
Meanwhile, domestic silver prices fell by Rs 30 per tola and Rs 25.72 per 10 grams to stand at Rs 2,120 per tola and Rs 1,817.55 per 10 grams, respectively.
In the international market, gold prices were little changed as traders awaited U.S. growth data for more clues on the pace of Federal Reserve rate hikes and stronger dollar-capped advances. The price settled at $1,826 an ounce after falling $14.