Tuesday saw a sharp drop in gold prices in Pakistan due to the nation’s ongoing economic unrest and persistent currency fluctuations.
The price of gold (24 carats) declined by Rs 4,300 per tola and Rs 3,686 per 10 kilos, according to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), to settle at Rs 200,000 per tola and Rs 171,468 per 10 grammes, respectively.
The price of the valuable metal has fallen three times in a row, by Rs200 per tola on Monday and Rs4,000 per tola on Friday. Last week, the yellow metal market was primarily optimistic.
The State Bank of Pakistan’s reserves, which are at a historic low of $3,086.2 million and are only enough to fund imports for less than one month, might cause the price of gold to increase as Pakistan continues to buy the precious metal.
However, investors were only buying gold bars, not jewellery, which had lowered goldsmiths’ profit margins and put the labour force at risk of losing jobs as jewellery manufacturers turned to other careers in the lack of work.
A weaker dollar, which had recently suffered severe losses, helped gold rise for a second straight session on the international market as traders awaited additional economic data to determine its expected impact on US interest rates.
Following a Monday low of $1,875.36 per ounce, spot gold was up 0.4% at $1,875.36 per ounce around 0940 GMT.
In the meantime, local silver prices dropped by Rs20 per tola and Rs17.14 per 10 grammes, respectively, to settle at Rs2,230 and Rs1,911.