Due to the continued economic uncertainty in Pakistan caused by the postponement of the resurrection of the International Monetary Fund (IMF) contract, the gold price rises on Friday.
The price of gold (24 carats) rises by Rs 1,300 per tola and Rs 1,114 per 10 grams to settle at Rs 208,500 and Rs 178,755, respectively, according to data issued by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).
The precious metal has increased for three straight sessions despite declining foreign exchange reserves and a weak currency, which will increase the price as Pakistan imports gold to meet its demand.
The State Bank of Pakistan’s (SBP) holding reserves decreased by $592 million to $3,086.2 million in the week ending January 27 as a result of foreign loan payments, reaching their lowest level since February 2014 and barely covering imports for 18.5 days (0.61 months).
As cautious investors evaluated several central bank comments and prepared for an important US non-farm payrolls report, gold practically stabilized on the global market in a narrow range. Spot gold dropped $44 to $1,911 per ounce after dropping about 2% in the previous session.
In the meantime, local silver prices rose by Rs50 per tola and Rs42.86 per 10 kilos, respectively, to settle at Rs2,350 and Rs2,014.74.