KARACHI: Gold continued to shine in the domestic market for the fourth consecutive day on Tuesday amid political uncertainty and the PTI’s ongoing long march on Islamabad.
Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of the gold rose by Rs1,400 per tola and Rs1,200 per 10 grams to settle at Rs152,400 and Rs130,658, respectively.
Gold is often seen as an alternative investment during times of political and financial uncertainty. Cumulatively, the precious commodity has gained Rs6,000 per tola during the last five sessions.
Analysts continue to see safe-haven demand (for gold) because the uncertainty over how the political developments are going to play out is extremely high.
PTI kick-started its second march towards Islamabad today under the leadership of former prime minister Imran Khan after he was ousted via a no-confidence motion earlier this year.
Mounting fears over the economic toll from the long march, exacerbated by the depreciating rupee have put safe-haven bullion on track.
The price for local markets is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets.
In the international market, the price of the yellow metal declined by $12 per ounce settling at $1,651 as the dollar rose, with zero-yield bullion giving up gains from bets for a slowdown in monetary tightening later in the year as immediate focus turned to an impending rate hike next week.
The precious commodity’s rates in Pakistan are around Rs1,000 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.