Gold was trading close to its all-time high on Thursday after its price fell slightly on the second day of 2019 and remained unchanged because of New Year holidays in the US where markets remained closed the previous day.
The precious metal was trading at Rs67,800 per tola, unchanged compared to the previous day’s tally, according to data compiled by the All Sindh Saraf and Jewellers Association. The prices compiled by the ASSJA come with a lag of a day after changes in international prices. However, the markets in the US remained closed thus the price in Pakistan remains unchanged.
Pakistani traders adjust gold prices based on price movements in the international market and fluctuation in the dollar rates as well as market forces of demand and supply. Gold usually goes up when the dollar falls as investors move away from dollar-backed funds to gold and vice versa.
Gold is trading close to its highest level of Rs68,000 per tola, the price of December 20, as international gold prices continue to surge.
When looked in the longer context, rupee depreciation, international price and local demand has been driving the gold rates up. For example, gold prices increased by more than 8% in the last three months. The trend may hold for a while given the uncertainty around rupee-dollar exchange rates.
When this report went online, gold futures were trading at $1,288 per ounce in the international market, their highest level in the last seven months.