As the safe-haven bullion’s value improved in the international market Wednesday, the gold rate also went up in Pakistan.
The rate of gold (24 carats) increased by Rs600 per tola and Rs514 per 10 grams to reach Rs237,800 and Rs203,875, respectively, data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.
The international price rose by $23 to settle at $1,982 per ounce.
US Democrats and Republicans ended another round of talks on Tuesday on the federal debt ceiling without reaching an agreement.
If the debt ceiling — which is currently capped at $31.4 trillion — is not raised, it would trigger the first-ever US default.
Investors also awaited the minutes from a recent Federal Reserve meeting regarding the interest rate.
The international developments also affected the domestic market, where the gold rate has been volatile in recent weeks. This has been due to a number of factors, including economic and political turmoil, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge.
The rupee, which fell to an all-time low of Rs298.93 on May 11, closed at Rs287.13 per US dollar in the interbank market Wednesday.
The jewellers’ body also said that local gold was “overcost” by Rs4,000 per tola in Pakistan compared to the Dubai bullion market. This means that, at present, the Pakistani gold market is more expensive than the world market.
Data shared by the association showed the price of silver remained unchanged at Rs2,900 per tola and Rs2,486.28 per 10 grams, respectively.