Karachi, July 11, 2023 – Gold prices in Pakistan dropped massively by Rs4,500 per tola on Tuesday in anticipation of further appreciation in value of Pakistani Rupee (PKR).
The gold 24 karat per Tola ended down by Rs4,500 to Rs204,500 from previous day’s closing of Rs209,000. Similarly, the gold 24 karat per 10 grams slipped by Rs3,858 from last day’s closing of Rs179,184.
It is interesting to note that the gold price in international market witnessed a gain of $7 to end at $1,932 per ounce.
Market analysts believed that the gold price in Pakistan plunged because of expected rise in rupee value against the dollar.
Just a day prior, Fitch Ratings elevated Pakistan’s Foreign-Currency Issuer Default Rating (IDR) from ‘CCC-‘ to ‘CCC,’ indicating improved external liquidity and funding conditions. This rating upgrade has played a pivotal role in bolstering the confidence of investors and strengthening the value of the Pakistani Rupee against the US dollar.
After this rating upgrade, the PKR on July 11, 2023 demonstrated a remarkable recovery against the US dollar, closing at PKR 278.57 in the interbank foreign exchange market. This positive trend reflects a gain of PKR 1.23 in the rupee’s value compared to the previous day’s closing rate of PKR 279.80.
The gold rate may see further decline in Pakistan as IMF executive board is set to meet on July 12, 2023 to decide about the approval for standby agreement (SBA) amounting $3 billion to Pakistan.
