On Thursday, the price of gold dropped over Rs 1,000 per tola as market turbulence diminished demand for the safe-haven metal.
The price of the precious metal decreased by Rs 1,200 per tola and Rs 1,029 per 10 grammes to settle at Rs 185,300 per tola and Rs 158,865 per 10 grammes, respectively, according to data issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
Since the beginning of the week, the price of gold has been erratic as favourable and unfavourable political and economic news have affected market sentiment.
According to the group, the price of gold in Pakistan has been “overcost” by Rs2,000 per tola when compared to pricing in Dubai. This indicates that the price of gold in Pakistan is currently higher than it is on the global market.
It should be noted that Pakistan imports practically all of the gold it needs, and local traders fix their prices in accordance with worldwide market rates. The metal is imported by jewellers, who first exchange its value into US dollars and UAE dirhams.
The majority of the buyers in the local market these days are investors in gold, according to goldsmiths. In the past, people kept their money in US dollars to protect them from the effects of the rupee’s devaluation during a period of high inflation.
The precious metal had corrections during the first three sessions of last week’s gold price volatility, but it later regained its lustre. The price increased by Rs2,000 over the turbulent seven-day period that ended on January 14.
According to goldsmiths, after the dollar’s shortage on the open market, investors began to shift their investments to the bullion market. In contrast to the interbank market, where unauthorised dealers were selling the dollar for Rs229, the black market was offering it for Rs290-300.
In the meantime, domestic silver prices fell by Rs. 20 per tola and Rs. 17.15 per 10 grammes, respectively, to settle at Rs. 2,080 and Rs. 1,783.26, respectively.
The price of gold fell from session highs on the international market, although prices above the $1,900 level were underpinned by anticipations of a more gradual pace of Federal Reserve rate increases. After dropping $6, the price reached Rs 1,909 per ounce.
