Business

Gold price rises in Pakistan; silver hits all-time high

Published

2 years ago

Farwa

Gold prices increase in world markets as dollar trims gains.
Trend to take cue on central bank’s monetary stance, inflation.
Silver in local market touches all-time high of Rs2,350 per tola.

Gold prices in Pakistan rose on Monday, tracking global trends and a possible push from a retreating rupee that consequently turns dollar-quoted safe-haven metal pricier, forcing traders to err on the side of caution on the eve of monetary policy meeting.

According to the data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) rose by Rs1,200 per tola and Rs1,028 per 10 grams to settle at Rs209,500 and Rs164,645 respectively.

Rupee depreciated 0.44% against the dollar in the inter-bank market on Monday. As per the State Bank of Pakistan (SBP), the rupee settled at 285.04, a loss of Rs1.25.

The State Bank of Pakistan is expected to raise the policy rate by 100-200 basis points as inflation is spiralling out of control. Consumer price inflation in Pakistan jumped to a record 35.37% in March from a year earlier.

Gold is often hailed as a hedge against inflation—increasing in value as the purchasing power of the dollar declines.

Pakistan’s monthly inflation blew past forecasts in March and soared to a nearly all-time high level — 35.4% — from a year earlier, with people feeling more pain from some of the fastest rising consumer prices amid straining budgets as cost of living continues to outstrip average incomes.

Last month, the central bank hiked the policy rate by 300 basis points to 20%.

World gold prices bounced back on Monday as the dollar trimmed its initial gains that were driven by bets that OPEC’s surprise output cuts could jack up global energy prices and force central banks to hike interest rates.

Spot gold rose 0.5% to $1,977.43 per ounce by 1206 GMT. U.S. gold futures gained 0.4% to $1,994.50.

Earlier in the session, gold touched a one-week low of $1,949.54.

While gold is traditionally considered a hedge against inflation, increasing the interest rates to rein in rising price pressures dims the appeal of the asset since it pays no interest.

Silver prices in the domestic market rose by Rs80 per tola and Rs68.59 per 10 grams to settle at their all-time highs of Rs2,350 and Rs2,014.47, respectively.

International prices of silver fell 0.3% to $24.01 per ounce, platinum was also down 0.3% to $988.60 while palladium rose 0.7% to $1,470.72.

Business

Trade ties between Pak-Oman: Both nations decide to activate “Joint Business Council”.

Published

17 hours ago

Farwa

Jam Kamal Khan, federal minister for commerce, visited Oman Chamber of Commerce and Industry in Muscat alongside chairman Faisal Abdullah Al Rawas.

To enable closer economic collaboration, both sides decided during the meeting to activate joint Business Council between OCCI and the federation of Pakistan Chambers of Commerce and industry.

Concurrent with the conference, the Embassy of Pakistan arranged a b2b networking event in association with OCCI to gather Omani Businessmen and Pakistani Business Delegates investigating trade prospects.

Speaking on the occasion, Jam Kamal Khan said, “Our present trade figures do not fairly represent the depth of our connection. We can quickly raise the current Trade volume to two or three times its present level by just eliminating logistical and communication barriers.

Business

Despite economic gains, PSX remains strong.

Published

17 hours ago

Farwa

Amidst the ongoing negotiations with the International Monetary Fund (IMF) regarding a loan tranche, the Pakistan Stock Exchange (PSX) has resumed its upward trajectory in recent days.

The KSE-100 Index gained 600 points on Friday, the penultimate working day of the business week, and then increased to 115,730 points as traders showed confidence and engaged in trading.

After experiencing fluctuations, the PSX gained strength on Thursday, as the major index surpassed 115,000 points.

The KSE 100-Index closed at 115,094.23 points after gaining 1,009.70 points, or 0.89 percent. 115,247.39 was the intraday high, and 14,429.93 was the lowest.

According to experts, one important factor is Moody’s Ratings’ upgrade of Pakistani banks. Investor confidence has also increased due to the expectation of a positive conclusion from the negotiations with the International Monetary Fund (IMF).

In its assessment, Moody’s stated, “We have shifted our outlook on Pakistan’s banking system from stable to positive to reflect the banks’ resilient financial performance as well as improving macroeconomic conditions from very weak levels a year ago.”

The major index of the Pakistan Stock Exchange (PSX) surpassed 115,000 on Thursday, indicating a surge in the market.

Business

Pakistan resolves to meet benchmarks, and the IMF promises economic help.

Published

17 hours ago

Farwa

In the midst of an ongoing economic review, the delegation from the International Monetary Fund (IMF) has promised Pakistan economic cooperation.

In order to assess the delivery of a $1 billion tranche under the $7 billion rescue deal, IMF officials are now in Pakistan.

Today, March 14, marks the completion of the two-week-long economic review and negotiations between the global lender’s representatives and Pakistani authorities.

The team met with Finance Minister Muhammad Aurangzeb at the Ministry of Finance for the last round of negotiations.

The nation’s economic team’s actions and performance were praised by the visiting officials.

Aurangzeb promised the IMF during the conference that all economic goals would be met. He said that as long as the loan program is in place, no goals would be broken.