Business

Gold gains lustre as price goes up

Published

11 months ago

Farwa

Domestic gold rate reaches Rs237,800 per tola.
International rate rises to $1,982 per ounce.
Silver price remains stable at Rs2,900 per tola.

The price of gold went up again in Pakistan Wednesday after the international rate edged higher as traders eyed a possible deal on raising the US debt limit as well as a future interest rate hike.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold increased by Rs600 per tola and Rs514 per 10 grams to reach Rs237,800 and Rs203,875, respectively.

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.

Business

Pakistan’s gold price increases by an additional Rs. 800 per tola.

Published

20 hours ago

Farwa

The price of yellow metal in the local market hit Rs247,300 on the first working day of the week, following a rise of Rs800 in a single day.

The cost of ten grams of 24-karat gold increased by Rs686 on Monday, making the current price Rs212,020.

In addition, the cost of 10 grams of 22-karat gold increased significantly, trading at Rs194,351.

These fluctuations are strongly correlated with shifts in the US dollar’s value, demonstrating the tight connection between gold prices and exchange rates. This emphasizes how local gold markets are impacted by variables related to the global economy.

The price of the precious metal dropped $16 on the international market on Monday, hitting $2,348 per ounce.

Business

A delegation from Pakistan travels to the US to bargain with the IMF for a new loan.

Published

21 hours ago

Farwa

The Pakistani delegation consists of the Governor of the State Bank of Pakistan, the Secretary of Finance, the Additional Secretary, and other individuals.

The Finance Minister was greeted at the airport by Pakistan’s Ambassador to the United States, Masood Khan, and Embassy staff.

The Finance Minister will meet with representatives of the World Bank and IMF while he is in the US.

The IMF and Pakistan are expected to negotiate next week, according to sources.

Sources claim that Islamabad will apply for a new credit package from the IMF.

The Finance Minister’s itinerary also includes meetings with members of think tanks and the world press.

Last month, Pakistan and the IMF came to a staff-level agreement over the third and final review of the $3 billion stand-by arrangement. Should the board of the global lender approve this deal, Pakistan will get approximately $1.1 billion.

Although a specific date has not been determined, the IMF board is anticipated to evaluate the case in late April, according to a spokeswoman.

Business

Pakistan’s petrol prices are anticipated to rise.

Published

21 hours ago

Farwa

The Oil and Gas Regulatory Authority (OGRA) will not disclose the anticipated increase in fuel prices until its work is finished, according to sources.

Prime Minister Shehbaz Sharif will receive the summary of the petrol price, and sources further stated that the new pricing will be revealed following his approval today.

Noteworthy to highlight is that Pakistan was previously ordered by the International Monetary Fund (IMF) to impose an 18% General Sales Tax (GST) on gasoline.

Details indicate that Pakistan was requested by the Monetary Fund to stop reducing sales tax on all goods, including gasoline.

To boost tax revenue, Pakistan’s recently elected government should impose a sales tax on petroleum items in addition to a Rs 60 charge.

High-speed diesel (HSD) was reduced by Rs3.32 per litre on March 31 but petrol prices increased by Rs9.66 per litre by the government.

In contrast to the reduction in the price of high-speed diesel (HSD) to Rs282.24 from Rs278.92, the price of gasoline jumped to Rs289.41 per litre.

The adjustments were brought about by a commensurate increase in the price of gasoline and a decline in the price of HSD on the global market, according to a statement released by the Finance Ministry.

According to the statement, the adjustment was made in accordance with government policy, which transfers pricing differences from the foreign market to the home market.