Gold price jumps to Rs242,700 per tola in Pakistan

May 29, 2024 (MLN): Gold price in Pakistan jumped on Wednesday, with the price of 24-karat gold gaining Rs2,400 to Rs242,700 per tola today.

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 Rs208,076 per 10-gram, up by Rs2,058.

Similarly, the price of 22-karat gold was quoted higher at Rs190,736 per 10-gram.

Moreover, silver prices also surged in line with the international prices, with 24-karat silver being sold at Rs2,900 per tola and Rs2,486.28 per 10-gram, a gain of Rs100 per tola and Rs85.74 per 10-gram.

On the global front, spot gold traded near $2,345.04, 0.66% lower compared to the previous close.

While spot silver held near $32 an oiunce after closing 1.36% higher yesterday.

However, gains remain capped as 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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