Gold’s losses continued into a third session on Saturday and it ended up just beyond the threshold of Rs150,000 per tola in accordance with price movement on the international market.
The price of the precious metal decreased by Rs3,750 per tola and Rs3,216 per 10 grammes, according to data made public by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), to settle at Rs150,100 per tola and Rs128,686 per 10 grammes, respectively.
Over the past three sessions, the price of the valuable metal has decreased by almost Rs5,000 per tola. In the meanwhile, for the week ending September 24, it lost Rs6,100 per tola.
Globally speaking, Pakistan has a modest market for gold and rates in Pakistan are around Rs2,000 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,570 per tola and Rs1,346.02 per 10 grams.
The price of gold in local markets is set by taking into account its costs in international markets, the rupee-dollar exchange rate, and domestic market demand and supply.
The most recent pricing for local marketplaces was chosen while taking into account the exchange rates between buyers and sellers.
The price of the yellow metal dropped $2 per ounce on the international market, reaching $1,642 — its lowest level since April 2020 — as a result of a relentless increase in the value of the US dollar and Treasury yields as the Federal Reserve takes a more aggressive stance to rein in soaring inflation.
Analysts concur that a recession is imminent for the economy. The likelihood of a harsh landing is increased, and this has only served to increase flows into the dollar, which has been bad news for gold.
