Gold prices extended gains for a fourth session on Friday as the Pakistan rupee retreated and ongoing economic tensions underpinned the metal’s safe-haven demand.
Data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) rose by Rs700 per tola and Rs601 per 10 grams to settle at Rs208,700 and Rs178,927.
The precious commodity gained Rs4,100 per tola during the four sessions (Tuesday-Friday) while it gained Rs14,300, or 7.35%, per tola cumulatively in March.
Investors’ attention shifted towards the precious commodity the economic tensions continue to rise amid the International Monetary Fund (IMF) reviewing external financing commitments from friendly countries before it releases bailout funds.
The delay in the revival of the programme is negatively impacting the currency market which in turn is bolstering demand for gold.
The local unit lost 0.05% in the interbank market today settling at 283.79 against the US dollar.
Gold price moves in line with the rupee-dollar parity as the country meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country.
Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.
Moreover, a hike in seasonal demand added fuel to the rising prices in the local bullion market.
The association also mentioned that the price of gold is Rs8,000 per tola “undercost” in Pakistan, as compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global.
Meanwhile, silver prices in the domestic market remained unchanged at Rs2,270 per tola and Rs1,946.15 per 10 grams, respectively.
In the international market, the per-ounce gold price rose by $10 to settle at $1,981 and was bound for its second straight quarterly rise after recent banking turmoil raised hopes of a less-aggressive US Federal Reserve and shored up interest in bullion.
Bullion has added more than 8% so far this quarter and was also headed for its best month since November 2022.