Business

Gold rates in Pakistan make minor gains

Published

2 years ago

Farwa

Gold price in Pakistan settles at Rs221,500 per tola.
Price of silver remains unchanged in local market.
Yellow metal falls by $4 in the international market.

KARACHI: Gold rates in Pakistan made minor gains on Friday despite international prices witnessing a decline.

According to data issued by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) appreciated by Rs1,300 per tola and Rs1,115 per 10 grams to settle at Rs221,500 and Rs188,786, respectively.

Meanwhile, the price of the yellow metal fell by $4 to settle at $1,932 per ounce in the international market today.

Gold was on track for its biggest weekly decline in six as data projecting continued strength in the US labour market firmed bets for US interest rates remaining elevated and boosted Treasury yields and the dollar.

“The market is slowly accepting the fact that maybe rates will stay higher for longer,” reflected in Treasury yields rising this week with a downward impact on gold, said Harshal Barot, a senior consultant at Metals Focus.

“The dollar has strengthened even after the US rating downgrade, so that is one potential supporting factor that hasn’t played out.”

Gold prices have declined more than 1.4% so far this week, having slipped to July 11 lows on Thursday as 10-year US Treasury yields climbed to their highest since November after strong US jobs data.

Rising yields dampen the appeal of non-interest-bearing gold.

Meanwhile, 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 remained unchanged 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.