Business

Gold edges lower in Pakistan amid international rout

Published

2 years ago

Farwa

Gold price in Pakistan settles at Rs220,200 per tola.
Price of silver loses Rs50 per tola.
Yellow metal falls by $15 in international market.

KARACHI: Gold prices in Pakistan edged lower on Thursday after the commodity in the international market witnessed a decline while the rupee also made gains against the dollar.

According to data issued by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) lost Rs2,800 per tola and Rs2,401 per 10 grams to settle at Rs220,200 and Rs188,786, respectively.

Meanwhile, the price of the yellow metal fell by $15 to settle at $1936 per ounce in the international market today.

It steadied after data showing a deterioration in euro zone business activity triggered some safe-haven inflows, but held near three-week lows on a stronger dollar and higher bond yields.

“Gold is in one of those modes where it seems to be taking the stairs up, but the escalator down,” said independent analyst Ross Norman. “The immediate outlook for gold is negative, but not outrageously, so dips are also seen as good buying opportunities”.

The yellow metal fell 0.5% on Wednesday after stronger-than-expected US private payrolls data gave the Federal Reserve more room to hike rates to cool inflation, sending the dollar to a near four-week high and 10-year Treasury yields to a nine-month peak.

The precious commodity has gained Rs8,000 per tola in the month of July in the local market.

The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, and high inflation. People prefer to buy gold in such times as a safe investment and a hedge.

Data shared by the association showed the price of silver prices also declined by Rs50 and Rs48.86 to settle at Rs2,750 per tola and Rs2,357.68 per 10 grams, respectively.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

5 hours ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

6 hours ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.