Gold prices in Pakistan plummeted sharply on Thursday due to a significant appreciation of the local currency against the dollar in the open market.
The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported that the price of 24-carat gold fell by Rs5,400 per tola and Rs4,629 per 10 grams, resulting in new prices of Rs229,000 and Rs196,331, respectively.
Despite the local trend, the international gold price increased by $4, settling at $1,967 per ounce. The decline in the value of the precious metal in Pakistan coincided with a rise in the value of the rupee, as the dollar decreased by Rs27 in the open market.
Malik Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP), remarked that this is the first time the dollar rate has fallen by Rs27 in Pakistan.
Simultaneously, the rupee increased 0.03% in the interbank market, closing at Rs385.38 against the dollar.
Just a day prior, gold prices had risen by Rs1,600 per tola after experiencing an Rs1,700 drop over the preceding two days.
Gold rates in Pakistan have recently been fluctuating amidst ongoing political and economic instability, high inflation, and currency depreciation. In such times, many prefer to invest in gold as a stable asset and a protective measure.
In addition to gold, the jewelers’ association data showed a drop in silver prices as well, with a decrease of Rs50 per tola and Rs42.87 per 10 grams, making the new prices Rs2,750 and Rs2,357.68, respectively.
