Gold Prices Plunge in Pakistan as Rupee Gains Strength
Karachi: The gold market in Pakistan experienced a significant drop in prices at the beginning of the week due to the appreciation of the local currency against the US dollar in the open market.
Gold Price Decrease
Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) revealed that the price of 24-carat gold declined by Rs8,800 per tola and Rs7,544 per 10 grams. The new prices settled at Rs207,200 per tola and Rs177,641 per 10 grams, respectively.
International Market Trends
In contrast, the price of gold in the international market witnessed a slight increase of $9, reaching $1,912 per ounce.
Volatility and Safe Investment
The gold rate in Pakistan has been subject to volatility due to ongoing political and economic uncertainty, as well as high inflation. Many individuals choose to invest in gold during such times as a safe investment and a hedge against market fluctuations.
Silver Price Movement
In addition to gold, the price of silver also experienced a decrease. The cost of silver dropped by Rs50 per tola and Rs42.87 per 10 grams, settling at Rs2,500 per tola and Rs2,143.34 per 10 grams, respectively.
Local Market Response
Despite the increase in international bullion prices, the local market witnessed a decline due to the recovery of the Pakistani rupee against the US dollar. The rupee appreciated by Rs5, closing at Rs285 after the government signed a staff-level agreement (SLA) with the International Monetary Fund (IMF) for a $3 billion financing facility.
Interbank Rate Unavailable
Due to a bank holiday, the interbank rate was not available on the given day.
Published in PakWeb, July 03, 2023.
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