While investors remained cautious about upcoming interest rate hikes by the State Bank of Pakistan (SBP) to contain excessive inflation, gold prices slipped lower on Saturday and were headed for a second straight weekly decline.
Although rising interest rates raise the opportunity cost of storing the non-yielding bullion, gold is nevertheless regarded as a good inflation hedge due to its great sensitivity to changes in interest rates.
The price of gold (24 carats) decreased by Rs 1,000 per tola and Rs 858 per 10 grammes to settle at Rs 194,100 and Rs 166,409, respectively, according to data issued by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).
