In a see-saw movement, gold prices increased on Tuesday as the precious metal became more expensive in the international market.
A tola of gold increased by Rs200 and was traded at Rs67,300, according to the data compiled by the All Sindh Saraf and Jewellers Association. It became more expensive again compared to the last week when it fell sharply by Rs600 to 67,100.
The prices compiled by the ASSJA come with a lag of a day after changes in the international prices. 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. And that is precisely what drove gold prices up yesterday.
Gold prices increased in the international market on Monday as investors expected the American central bank may not go for a further hike in interest rates this year because of the economic slowdown. As a result, the dollar fell slightly. Because of weaker dollar investors moved to the safe haven metal, driving its prices up.
Last year, gold prices increased 20%, according to the data compiled by Pakistan Bureau of Statistics (PBS). This was in line with an international trend where gold continued to surge and reached a seven-month high. When this report went online, gold futures were trading at $1,285 per ounce in the international market.
In Pakistan, gold price hit its highest level of Rs68,000 per tola on December 20 before falling back to its current level at the beginning of 2019.