Gold prices in Pakistan saw a notable increase on Friday, with 24-karat gold being sold at Rs242,900 per tola, marking a rise of Rs1,600 per tola. Despite this hike, the price remains significantly undervalued, being kept Rs4,500 below its actual cost due to a reduction in purchasing power.
The Karachi Sarafa Association reported that the price of 24-karat gold per 10 grams reached Rs208,248, up by Rs1,372. Similarly, 22-karat gold prices also rose, quoted at Rs190,894 per 10 grams.
In contrast, silver prices in the domestic market remained stable. The price for 24-karat silver stood unchanged at Rs2,750 per tola and Rs2,358 per 10 grams.
Global Market Trends
On the international front, spot gold traded near $2,364 an ounce, increasing by $3.9 or 0.17% from the previous session. The precious metal is on track for its second consecutive weekly gain, buoyed by softer U.S. economic data which has fueled investor optimism regarding potential monetary easing.
Recent data showed a moderate decline in first-time applications for U.S. unemployment benefits and a drop in new housing construction. Tepid retail sales last month also contribute to the speculation of a possible rate cut in September, as reported by Reuters. Lower interest rates reduce the opportunity cost of holding non-yielding bullion, making gold more attractive.
Meanwhile, China’s yuan slipped to a fresh seven-month low against the dollar. According to Hansen, “The soft Chinese renminbi is also one of the reasons why investors in general in China have been falling over gold in recent months, apart from obviously the worries about the property sector.”
