Gold Prices in Pakistan Surge by Rs 200 as Rupee Depreciates Against Dollar

Gold Prices in Pakistan Surge by Rs 200 as Rupee Depreciates Against Dollar

Karachi, November 8, 2023 – Gold prices in Pakistan experienced a notable increase of Rs 200 on Wednesday, reflecting the ongoing depreciation of the Pakistani Rupee (PKR).

The 24-karat gold per Tola surged to reach Rs 214,200, while the price of 24-karat gold per 10 grams rose by Rs 172, closing at Rs 183,642 in the local markets.

This surge in gold prices can be attributed to the gradual devaluation of the domestic currency against the US dollar. Market analysts pointed to the sustained weakening of the Pakistani Rupee as a significant factor driving the surge in precious metal prices.

Just a day earlier, the PKR had extended its losing streak, marking its 12th consecutive decline against the US dollar, closing at a rate of PKR 286.39. Over the course of these twelve sessions, the rupee had depreciated by PKR 7.60, resulting in a substantial 2.72 percent decrease from its October 20, 2023, closing rate of PKR 278.79. This persistent slide of the rupee has raised concerns among financial experts and has been linked to a variety of contributing factors.

The local prices of gold are significantly impacted by the exchange rate, which, in turn, is influenced by international market dynamics. Despite this depreciation of the PKR, the prices of the yellow metal remained relatively stable in international markets, with gold trading at $1,988 per ounce.

The relationship between currency devaluation and rising gold prices is a well-documented phenomenon. When a local currency loses value against the US dollar, the cost of imported goods, including gold, tends to rise. This is because gold is priced in US dollars globally, and a weaker local currency means that more of it is needed to purchase the same amount of gold. As a result, consumers in Pakistan are experiencing the impact of a depreciating rupee as they pay higher prices for this precious metal.

In addition to currency devaluation, global factors such as geopolitical tensions, economic uncertainty, and fluctuating oil prices also play a role in influencing gold prices. These factors can lead to an increase in demand for gold as a safe-haven asset, further driving up its price.

While the rising gold prices may concern consumers and investors, they can also present opportunities for those who have invested in the precious metal. Individuals who hold gold as an investment may see their assets appreciate in value, potentially serving as a hedge against economic instability.

It is important for consumers and investors to closely monitor the exchange rate and global economic trends as they continue to impact the prices of various commodities, including gold. As Pakistan’s financial landscape navigates these challenges, staying informed and making informed financial decisions is crucial to managing one’s assets effectively.

Gold Prices in Pakistan Drop by Rs 200 Despite Massive Fall in International Market