Business

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

Published

2 years ago

Farwa

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.

Business

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

Published

6 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

7 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.