Gold rates in Pakistan moved higher on Tuesday. The All Pakistan Sarafa Gems and Jewellers Association, the trade body whose rates jewellers follow, said 24-karat gold rose by Rs900 to Rs440,836 per tola, and put the same 24-karat gold at Rs377,945 per 10 grams, up Rs771. Reports say the rise came after a one-day dip. The silver rate did not move and stood at Rs6,532 a tola.
What Tuesday's rates show
Buyers seeking a gold price update in Karachi are looking at this association notice, which quotes the local market in Pakistan. A tola is the weight used for gold in Pakistani jewellery shops, and the association also gave a 10-gram price for smaller comparisons. On world markets, the association put gold $9 higher, at $4,183 an ounce.
The notice did not list a 22-karat rate. In the trade, 24-karat gold is the purer metal and 22-karat is mixed with other metals, so 22-karat usually costs less per tola. Tuesday's figures do not show how wide that gap is.
Why the price rose
The rise in Pakistan tracked a higher international price as oil and the US dollar eased. Tuesday's oil prices were lower, and the decline was set to be the first in almost a week. The US currency came off a peak last seen 18 months ago, and the yield on the 10-year US government bond fell to its lowest since October 2.
Gold pays no interest and is priced in dollars, so a softer dollar and lower bond yields can support demand. Expectations of a rate increase by the US Federal Reserve, the American central bank, stayed subdued ahead of inflation data later this week. Higher interest rates can weaken demand for gold because savings then earn a return elsewhere.
Ole Hansen, head of commodity strategy at Saxo Bank, said "attention now turns to a busy week of US economic releases." He pointed to September consumer prices on Wednesday, producer prices and retail sales on Thursday, and Federal Reserve Chair Kevin Warsh's appearance at the International Monetary Fund on Friday. The Fund lends to governments and brings economic officials together. Investors were also watching the Middle East. Many treat gold as a shelter in times of inflation or political strain.
Timeline: what has happened so far
- Before Tuesday: Reports say the latest rise followed a one-day dip in local prices. Another account, which did not give a date or a tola price, said a fall in Pakistan's gold price came as the dollar stayed firm.
- Tuesday: Gold rates in Pakistan rose, with the association putting 24-karat gold Rs900 higher at Rs440,836 per tola and Rs771 higher at Rs377,945 per 10 grams. The silver rate stayed at Rs6,532 per tola.
- Tuesday, overseas: International gold rose $9 to $4,183 an ounce. Oil fell, the US currency eased from an 18-month high, and the 10-year US Treasury yield dropped to its lowest since October 2.
Aasan alfaaz mein
Pakistan mein sona Tuesday ko mehnga ho gaya hai. 24 carat sona ab Rs440,836 fi tola hai, jo Rs900 zyada hai. 10 gram ki qeemat Rs377,945 hai. Chandi ki qeemat Rs6,532 fi tola par waisi hi hai, is liye sona kharidne walon ko aaj zyada rupay dene honge.
