On Friday, the gold prices in Pakistan experienced a significant decline, primarily influenced by the downward trend in the international market and a notable recovery in the value of the Pakistani rupee against the US dollar.
The price of gold, specifically 24 karat, fell by Rs6,500 to reach Rs230,800 per tola, while the rate of gold per 10 grams dropped by Rs5,573 to Rs197,874. Additionally, the price of gold at 22 karat per 10 grams concluded at Rs181,384.
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The decline in gold prices was not isolated to Pakistan, as the international market also witnessed a drop. Gold prices per ounce fell by $33, reaching $2,005. This decrease in the global market further contributed to the decrease in gold prices within the country.
However, it is crucial to note that the decline in gold prices was accompanied by a remarkable recovery in the value of the Pakistani rupee against the US dollar. On May 12, 2023, the rupee achieved a historic recovery of Rs13.85, closing at Rs285.08 to the dollar in the interbank foreign exchange market. This appreciation of the local currency against the dollar played a significant role in the reduced prices of gold in Pakistan.
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In addition to gold, the price of silver also experienced a decline. The rate of silver, specifically 24 karat per tola, dropped by Rs300 to Rs2,800, while the rate of silver per 10 grams at the same karat decreased by Rs257.21, settling at Rs2,400.54.
In the international market, the price of silver was recorded at $23.83 per ounce, further supporting the decline witnessed in Pakistan.
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The fall in gold and silver prices can be attributed to several factors. First, the decline in the international market reflects fluctuations in the global demand and supply dynamics of these precious metals. Economic indicators and market sentiment influence investor behavior, which, in turn, impacts the prices of gold and silver.
Second, the recovery of the Pakistani rupee against the US dollar played a significant role in the decline of gold and silver prices in the country. A stronger local currency decreases the cost of imported commodities, such as gold and silver, making them more affordable for consumers.
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It is important to note that the prices of gold and silver are subject to fluctuations in both the international and local markets. These changes can be influenced by various factors, including global economic conditions, geopolitical events, currency exchange rates, and investor sentiment. Therefore, it is advisable for investors and individuals interested in purchasing or trading precious metals to closely monitor market trends and seek advice from financial experts.
In conclusion, the gold prices in Pakistan experienced a significant fall on Friday, primarily driven by the decline in the international market and the notable recovery of the Pakistani rupee against the US dollar. The decrease in gold prices per tola and per 10 grams, as well as the decline in silver prices, can be seen as a reflection of the interplay between global market dynamics and local currency fluctuations. However, it is crucial to remain aware that these prices are subject to volatility, and investors should exercise caution and seek professional advice when engaging in transactions involving precious metals.
