A workers adds finishing touches to a gold bangle at his workshop. — AFP/File

KARACHI: Gold rates in Pakistan rose on Friday, drawing support from the increase in international rates and the rupee’s depreciation against the greenback. 

The price of gold (24 carats) gained Rs6,500 per tola and Rs5,574 per 10 grams to settle at Rs214,500 and Rs193,900, respectively, according to data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). 

Meanwhile, the price of the yellow metal remained unchanged at $1,959 in the international market today.

The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, and high inflation. People prefer to buy gold in such times as a safe investment and a hedge.

According to market practice, local prices of gold usually go up on the rupee’s depreciation against the US dollar and declining prices of commodities in the international market.

AA Commodities Director Adnan Agar cited the weakening of the US currency as the reason behind the increase in international prices which led to an increase in the local prices as well.

“The major reason for the increase in the local market is because of the international rates as the dollar against other currencies has been weakened internationally. The dollar and gold go inverse, if the dollar weakens then gold raises,” Agar explained the reason behind the rise in rates.

Moreover, people also tend to buy and sell the precious commodity ahead of the month of Muharram — which marks the beginning of the new Islamic year, eventually increasing the yellow metal’s demand.

Data shared by the association showed the price of silver increased by Rs50 per tola and Rs42.86 per 10 grams to settle at Rs2,650 and Rs2271.94, respectively.

The prices of the bullion have cumulatively gained Rs10,500 in the last two sessions — Thursday and Friday.

Meanwhile, the local currency fell by 0.41% against the greenback in the interbank market today, according to the data shared by the State Bank of Pakistan (SBP).

The rupee closed at Rs277.59 against the dollar. 

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