Gold price in Pakistan rises to Rs241,700 per tola

May 31, 2024 (MLN): Gold price in Pakistan edged higher on Friday, with the price of 24-karat gold gaining Rs500 to Rs241,700 per tola.

It is worth noting that the price has been kept a significant Rs3,000 below its actual cost today due to a reduction in purchasing power.

The Karachi Sarafa Association reported the price of 24-karat gold at Rs207,219 per 10-gram, down by Rs429.

Similarly, the price of 22-karat gold was quoted higher at Rs189,950 per 10-gram.

Meanwhile, silver prices remained unchanged, with 24-karat silver being sold at Rs2,900 per tola and Rs2,486.28 per 10-gram.

On the global front, spot gold traded near $2,344.5 an ounce, largely unchanged compared to the previous close.

Investors are assessing the diminishing bets of U.S. interest rate cuts ahead of a key inflation report due later in the week.

Last week, the Federal Reserve's most recent policy minutes of the meeting indicated officials would keep interest rates higher for longer as they struggle to bring inflation down to target.

This turns out to be bearish for the yellow metal, as in an environment of higher interest rates, gold loses its attractiveness due to the rising opportunity cost of holding it.

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