Gold prices in Pakistan regained their luster on Saturday as the rate crossed Rs 1,000 mark in the local bullion market on the back of significant gains in the international market.
According to the All Pakistan Sarafa Gems and Jewelers Association (APSGJA), the price of gold (24 carat) rose by Rs 1,200 per tola and Rs 1,029 per 10 grams to Rs 198,700 and Rs 170,353 respectively.
Overall, the yellow metal fell by Rs 1,300 a tola last week and only doubled as the movement of the Pakistani currency remains volatile.
The demand for gold in Pakistan has increased manifold. Pakistan meets almost all of its gold demand through imports, and traders follow its international price when setting domestic rates. Jewelers import the metal against US dollars and UAE dirhams before converting its price into rupees.
Overall, the yellow metal fell by Rs 1,300 a tola last week and only doubled as the movement of the Pakistani currency remains volatile.
Experts say gold can be a profitable way to go protection of investments from inflationbut only for a long time.
In comparison, the inflation-adjusted price of gold fluctuates greatly over short periods of time, making it a very strong near-term hedge for inflation.
Meanwhile, domestic silver prices remained unchanged at Rs 2,080 per tola and Rs 1,783.26 per 10 grams, respectively.
Internationally, gold prices weighed on falling U.S. Treasury yields and broader financial markets as concerns over a recession in the banking sector overshadowed a strong U.S. jobs report and dampened safe-haven flows into bullion. The price of an ounce settled at $1,866 after rising $32.
