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Gold price remains unchanged in Pakistan

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  • Cumulatively, the yellow metal gained Rs1,350 per tola in the domestic market during the week ended March 12.
  • Local prices of gold usually go down on rupee’s appreciation against US dollar.
  • Firmer tone to economic data and strengthening currency would undermine support for gold.

KARACHI: Gold price remains unchanged in Pakistan amid stability in the international market and rupee appreciation against the US dollar. 

According to rates issued by the All Sindh Sarafa Association, gold prices clocked in at Rs130,750 per tola and Rs112,097 per 10 grams on Saturday.

Cumulatively, the yellow metal gained Rs1,350 per tola in the domestic market during the week that ended March 12.

The association determines local prices based on rupee-dollar parity and international rates. According to the market practice, local prices of gold usually go down on the rupee’s appreciation against the US dollar and rising prices of commodities in the international market.

A firmer tone to economic data and strengthening currency would undermine support for gold, which has benefited in recent times from the plunge in local currency.

Gold rates in Pakistan are around Rs6,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,480 per tola and Rs1,268.86 per 10 grams today.

Gold in global market

In the international market, gold recorded minor gains as a safe-haven appeal for the metal dimmed after Russian President Vladimir Putin said there had been progressing in talks with Ukraine, with the likelihood of a looming US rate hike adding pressure to bullion.

The price of yellow metal slightly rose by $5 to settle at $1,988 per ounce.

“There are certain positive shifts, negotiators on our side tell me,” Putin said in a meeting with his Belarusian counterpart Alexander Lukashenko, but did not provide any details. 

“The Russia-Ukraine crisis will continue to support the prospect for higher precious metal prices,” said Saxo Bank analyst Ole Hansen in a note, as that could mean higher inflation, slowing growth and fewer central bank-rate hikes.

With US inflation ballooning in February, bets that the central bank will raise its benchmark overnight interest rate by at least 25 basis points on March 16, stood at 94%, according to CME’s FedWatch Tool. 

“(For gold) many positive fundamental factors, like inflation and supply chain disruption still remain… but in the short term, we might have priced a good amount of those into the market,” said David Meger, director of metals trading at High Ridge Futures.

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Zaidong, the ambassador, said China will fully back Pakistan’s counterterrorism operations.

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Reaffirming on Thursday that China will provide Pakistan with unwavering support in its fight against terrorism is Chinese Ambassador to Pakistan Jiang Zaidong.

In an interview that was broadcast on television, the ambassador promised to cooperate with Pakistan and said that China will protect the interests and safety of the citizens of the two friendly nations.

Zaidong underscored that efforts to undermine the two nations’ bilateral relationship would be thwarted by China’s cooperation with Pakistan.

Also, he emphasized how crucial China-Pakistan relations have become strategically given the changing nature of the world.

In highlighting the transformative impact of the China-Pakistan Economic Corridor (CPEC), the ambassador reaffirmed his nation’s commitment to seeing it through.

In addition to creating thousands of employment, he said, “the CPEC has facilitated significant advancements in power generation and transportation infrastructure with over $25 billion in direct investments and substantial infrastructure development.”

Zaidong stressed the value of sharing ideas and knowledge between Pakistan and China, acknowledging their shared security objectives.

Stressing that both countries have a common future, he envisioned their partnership having a greater social impact.

Concerning the terrorist attack on Chinese nationals [working on the Dasu dam], the ambassador expressed gratitude to the Pakistani people for their condolences and sympathy and commended the government for its prompt action.

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Mild rain in Lahore improves the weather

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Early on Friday, light rain in the province capital Lahore and its surrounding areas improved the weather.

But rain also led to power outages in several areas of Lahore, as multiple feeders of the Lahore Electric Supply Company (LESCO) blew, leaving whole sections of the city without power.

Details show that rain was observed in a number of locations throughout the city, including Model Town, Gulberg, Garden Town, Mall Road, Lakshmi Chowk, Gulshan Ravi, Jail Road, and Sanda.

However, the Met Office has forecasted an additional day of rain for the city during the next 24.

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The government will begin coordinated action against lawbreakers in the Katcha region

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On Friday, Mohsin Naqvi, the interior minister, announced that the government would begin a coordinated operation in the Katcha region to eradicate the miscreants for good.

He stated that collaborative efforts in the Katcha region will make use of contemporary technologies, including drones.

According to Mohsin Naqvi, all security agencies, including the police, should make sure that SOPs are fully implemented in order to protect Chinese nationals living in Pakistan.

He declared that any carelessness in this respect will not be accepted at all while presiding over a meeting to review the National Action Plan’s implementation at NACTA headquarters in Islamabad.

According to Naqvi, failure to follow the SOPs for the safety of foreign nationals will result in severe disciplinary action.

“We have to outfit our departments with cutting-edge technology to eradicate terrorism,” stated the interior minister. He declared that the provinces will receive all the assistance from the federation in this area.

Anti-state forces will be permanently driven out of the Katcha region, according to Naqvi. The interior minister expressed satisfaction with the anti-smuggling operations and stated that all ministries need to make sure that smugglers face stern legal action.

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