KARACHI: Gold prices rose in Pakistan on Friday, tracking gains in international bullion markets amid a weakening US dollar.
According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold increased by Rs2,800 per tola to settle at Rs440,636.
Similarly, the price of 24-karat gold per 10 grams rose by Rs2,401 to Rs377,774.
In the international market, gold prices gained $28 to reach $4,181 per ounce, the association reported.
Silver prices also increased in the domestic market, rising by Rs108 per tola to Rs6,256.
Global Markets Focus on US Economic Data
International investors remained focused on developments in the Middle East and upcoming US economic indicators for clues about the Federal Reserve’s future interest rate decisions.
Gold is traditionally considered a hedge against inflation and a safe-haven asset during periods of economic and geopolitical uncertainty. A weaker US dollar can also make gold more affordable for holders of other currencies, potentially supporting demand for the precious metal.
European stocks rose on Friday as markets stabilised following a sharp technology-led sell-off, while the US dollar headed for a weekly decline.
Asian stocks mostly advanced, and bond markets steadied as investors reversed some of the previous session’s moves.
Read Also: Oil edges down as investors weigh possible US sanctions on ‘shadow fleet’
In Indonesia, equities suffered their steepest decline since 1998 after index provider MSCI said the country’s market no longer qualified for emerging-market status and outlined plans to remove it from key indexes tracked by investment funds.
Meanwhile, governments and state-owned entities are increasingly raising funds through non-dollar-denominated bonds as competition for capital pushes up borrowing costs, a senior Citi banker told Reuters on Thursday.
Local-currency debt markets, including those denominated in the Chinese renminbi, Australian dollar, Hong Kong dollar and Singapore dollar, are attracting public- and private-sector issuers seeking to diversify their funding sources.
Stephanie von Friedeburg, Citi’s global head of public sector group, said the trend reflected growing interest in alternative funding markets amid intensifying competition for capital.