Gold price in the local market gained ground Thursday despite a drop in the rate of the commodity in the international market.
According to the data released by All-Pakistan Sarafa Gems and Jewellers Association, the gold rate (24 carats) increased by Rs100 per tola and Rs85 per 10 grams to settle at Rs214,600 and Rs183,985, respectively.
The price of the yellow metal increased during three sessions — from Monday to Wednesday — but declined during Thursday’s trade after the rupee and stocks recovered.
Gold is often hailed as a hedge against inflation and the commodity’s rate is hovering around a historic high after Pakistan’s monthly inflation in March soared to an all-time high level — 35.4% — from a year earlier.
Gold price moves in line with the rupee-dollar parity as the country meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country.
Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.
The association also mentioned that the price of gold is Rs7,000 per tola “undercost” in Pakistan, compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global.
Meanwhile, silver prices in the domestic market remained unchanged at Rs2,450 per tola and Rs2,100.48 per 10 grams.
In the international market, gold price declined by $11 per ounce to settle at $2,008.