Despite rising international prices, gold prices in Pakistan fell as the currency strengthened, discouraging investors from investing.
According to statistics supplied by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the gold price fell by Rs400 per tola and Rs343 per 10 gramme to settle at Rs145,500 per tola and Rs124,743 per 10 gramme.
Gold’s movement is primarily determined by the rupee-dollar exchange rate, and worldwide gold prices have been a negative driver for bullion.
Pakistan imports virtually all of its gold, and dealers determine rates in the country based on the worldwide price. Jewellers buy the metal in US dollars and UAE dirhams before converting it to rupees.
Since the dollar has dropped by over Rs5 in the open market, the association has adjusted down the bullion price accordingly.
In the international market, the yellow metal increased $13 per ounce to settle at $1,664 due to a weaker dollar, but non-yielding bullion remained on track for its greatest quarterly fall since March last year due to central banks’ continued aggressive monetary policy stance.
When compared to the Dubai market, gold prices in Pakistan are roughly Rs2,000 lower.
Meanwhile, local silver prices remained constant at Rs1,560 per tola and Rs1,337.44 per 10 kilos.
With gold under pressure, silver should struggle to outperform, but a clear upward move in gold poses significant dangers for silver.
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