Gold regains some lustre as uncertainty takes toll on rupee

• Gold price rises by Rs500 per tola.
• Per tola rate settles at Rs144,500.
• Silver prices remain unchanged.

KARACHI: Gold firmed on Thursday as the prospect of aggressive policy tightening by major central banks weighed on the non-interest-bearing metal’s appeal, while investors awaited European Central Bank’s policy announcement.

According to All Sindh Sarafa Jewellers Association (ASSJA), gold prices in the local bullion market rose by Rs500 per tola to reach Rs144,500, while the price of 10 grams of gold increased by Rs428 to reach Rs123,885.

A day earlier, the precious commodity closed at Rs144,000 per tola and Rs123,457 per 10 grams.

Gold remains as sensitive as ever to international banks rate hikes and as Pakistan remains a small market for gold at the global level therefore the price for local markets is determined keeping in view its prices in world markets, the rupee-dollar exchange rate and its demand and supply in local markets.

In the international market, bullion prices plunged by $26 per ounce to settle at $1,682 — falling below $1,700 due to policy rate concerns.

Gold rates in Pakistan are around Rs2,500 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,580 per tola and Rs1,354.60 per 10 grams today.