Gold price in Pakistan witnesses a slight decline

Karachi: Gold price in Pakistan experienced a minor decline as the international market continues to fluctuate amidst uncertainty surrounding the United States debt ceiling.

On Tuesday, the rate of the safe-haven bullion fell again in Pakistan, according to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The rate of gold (24 carats) decreased by Rs2,000 per tola and Rs1,714 per 10 grams, settling at Rs233,100 and Rs199,846, respectively.

The decrease in the international rate, which went down $9 to reach $2,006 per ounce, contributed to the domestic price decline.

The United States Congress is yet to raise the federal debt ceiling, currently capped at $31.4 trillion.

Treasury Secretary Janet Yellen has issued warnings that failing to raise the debt ceiling could result in the Treasury running out of cash to pay government bills, potentially triggering the first-ever US default.

The following increase was because of political uncertainty after the arrest of Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan, the price of gold reached an all-time high of Rs240,000 per tola on May 10.

However, it later dropped in line with the decline in the international rate.

The All Pakistan Sarafa Gems and Jewellers Association also highlighted that local gold in Pakistan is "over cost" by Rs3,500 per tola compared to the Dubai bullion market.

Additionally, the price of silver also experienced a decrease, with a drop of Rs50 per tola and Rs42.86 per 10 grams, settling at Rs2,950 and Rs2,529.14, respectively.