KARACHI: Price of gold Pakistan surged again today for the second consecutive day on Saturday as gold rates jumped by Rs1,100 per tola to hit Rs433,536 in the domestic market due to a slight rise in international gold prices. Today’s increase comes after yesterday’s decrease of Rs1,400 per tola as today’s rally offset part of the losses made in the previous session, keeping the precious metal in the same range of Rs430,000 to Rs435,000. As per the rates provided by the All-Pakistan Gems and Jewellers Sarafa Association, 10-gram gold also increased by Rs943 to Rs371,687.
The price of gold in the campaign follows that in the international market, where gold has gained $11 to cost $4,111, while the local prices follow those in the international market with an additional $20 added on top.
Silver Makes Record Gains – A Session To Remember
Whereas the gains made by the price of gold on Saturday were moderate, those made by the price of silver were more notable. Silver prices gained Rs30 per tola and set an all time high at Rs6,462.
Silver prices hitting their highest levels of all time on the same day when the price of gold is gaining in Pakistan indicates the strong gains being seen in the precious metal complex as a whole.
The historical peak of Rs6,462 for silver per tola means that the precious white metal is at an unprecedented price that Pakistanis who invest in silver jewellery, cutlery, or silver as an investment commodity have not witnessed in their lifetime. This is because of the appreciation of the value of their silver investments.
Gold Price Context for the Week
The gold price gain of Rs1,100 per tola in Pakistan is part of a larger story of metals strength which has been dominating Pakistan’s gold market recently. The market has moved from periods of sharp single-day gains like last week’s Rs12,200 per tola gain to consolidation or minor correction days like Friday’s Rs1,400 per tola loss.
The Rs1,100 per tola gain on Saturday, along with the gain of $11 on the international gold market, indicates that the market has entered into a period of consolidation between $4,100 and $4,200 per ounce in the international market after several sharp days of movement recent a phase before a new directional trend or sideways move for some time.
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What Are Buyers and Sellers Looking At?
For gold market players in Pakistan, the gold price Pakistan at the moment of Rs433,536 per tola comes close to the latest high of Rs440,936 seen in mid-July – which was the highest single session close in recent history for the market.
At current gold prices of $4,111 per ounce and expectations from institutions such as J.P. Morgan, Goldman Sachs, and Wells Fargo about targets of $4,900 and $6,300 respectively, the outlook of the professionals in the market is undoubtedly bullish – albeit one that will come after short-term setbacks in price such as Friday’s drop.
