Karachi, September 8, 2023 – Gold prices in Pakistan have extended their decline for the fifth consecutive day, largely due to the significant appreciation of the Pakistani Rupee (PKR) against the US dollar.
This decline has led to a notable reduction in the cost of the precious metal for local consumers.
READ MORE: Gold Rates in Pakistan Witness Around 10% Decline in Four-Day Falling Streak
In the local market, the price of 24-karat gold per tola saw a significant drop of Rs 4,000, closing at Rs 121,500. Similarly, the price of 24-karat gold per 10 grams fell by Rs 3,430 to close at Rs 184,184 in the domestic market. Over the past five days, gold rates in Pakistan have fallen by approximately 11.40 percent from their levels on September 4, 2023.
READ MORE: Drastic Decline in Gold Rates in Pakistan Amid PKR Recovery
Market analysts attribute this decline in gold prices to the substantial appreciation of the Pakistani Rupee against the US dollar. The Rupee’s recent strength is part of a broader trend, with it maintaining a winning streak against the dollar for the third consecutive day on Friday.
READ MORE: Pakistani Rupee Makes Sharp Recovery to End at PKR 304.94 to the Dollar
The local currency recorded an impressive gain of PKR 4.5 or 1.35 percent against the US dollar, closing at PKR 302.95 in the interbank foreign exchange market. This surge in the Rupee followed its recent all-time high of PKR 307.10 on September 5, 2023.
Interestingly, while gold prices have been on a downward trend in the Pakistani market, international gold prices recorded a modest gain of $2, closing at $1,923 an ounce. This suggests that the decline in local gold prices is primarily driven by currency exchange dynamics, with the appreciating Rupee making gold more affordable for Pakistani consumers.
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The continued appreciation of the PKR against the US dollar and its impact on gold prices will be closely monitored by investors and consumers alike as they assess the economic landscape and consider their financial decisions.
