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Gold extends losses to third day, price declines by Rs1,000 per tola

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2 years ago

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  • Gold price settles at Rs146,400 per tola in Pakistan.
  • Cumulatively, gold has lost Rs4,000 per tola in last three sessions.
  • Demand for gold picked up pace as wedding season kicks off.

KARACHI: Gold extended losses into a third session on Saturday, closing slightly above the threshold of Rs146,000 per tola, contrary to the price movement in the international market and expectations that economic recovery could sap inflationary pressure, curbing the metal’s appeal as a hedge.

Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of the precious metal declined by Rs1,00 per tola and Rs858 per 10 grams to settle at Rs146,400 per tola and Rs125,514 per 10 grams, respectively.

Cumulatively, the precious commodity has lost around Rs4,000 per tola in the last three sessions. Meanwhile, it lost Rs950 per tola during the week ending October 22.

Pakistan is a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the precious metal locally.

Accordingly, the gold price for local markets is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets.

The latest price for local markets was determined to keep in view the prices at which trade took place among buyers and sellers.

On the physical side, demand for gold in Pakistan picked up pace this week as some consumers bought into a retreat in domestic prices as the wedding season kicks off.

In the international market, the price of the yellow metal surged by $35 per ounce settling at $1,658 as the dollar weakened amid reports of a potential debate amongst the US Federal Reserve officials about the pace of rate hikes.

Gold is sensitive to rising interest rates, which increase the opportunity cost of holding bullion that does not pay interest.

The precious commodity’s rates in Pakistan are around Rs700 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market declined by Rs10 per tola and Rs8.56 per 10 grams to settle at Rs1,580 per tola and Rs1,354.60 per 10 grams.

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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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Business

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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