Karachi, October 13, 2023 – Gold prices in Pakistan experienced a decline, with 24 karat gold per Tola easing by Rs 100 to reach Rs 197,100, as of Friday.
Similarly, the rate for 24 karat gold per 10 grams slipped to Rs 168,981, reflecting an adjustment in the local market.
READ MORE: Gold Rates in Pakistan Decline by Rs 7,800 Despite Global Price Surge
Interestingly, the international market saw a contrasting trend as the price of the precious metal rose by $7, reaching $1,897 per ounce.
The recent softening of gold prices in Pakistan has left market experts and investors pondering the reasons behind this unique situation, despite a strong international gold market. One key factor driving this phenomenon is the remarkable appreciation of the Pakistani Rupee (PKR) against the US dollar.
Over the past few weeks, the PKR has demonstrated substantial strength against the dollar, appreciating by PKR 27.59, which is equivalent to a notable 9 percent gain since hitting its lowest point at PKR 307.10 on September 5, 2023.
READ MORE: Gold Rates Climb Up by Rs5,500 in Pakistan on Rising Global Prices
The disconnect between the strong Rupee and relatively stable gold prices in Pakistan has raised questions and discussion among market analysts. While the exact reasons for this anomaly are not definitive, several factors could contribute to this situation, including:
Import Costs: The cost of importing gold into Pakistan can be influenced by various factors such as taxes, tariffs, and transportation expenses. Changes in these variables can affect the final retail price of gold.
Local Demand: The local demand for gold within Pakistan plays a significant role in determining its price. Fluctuations in consumer demand, especially during festive seasons or wedding seasons, can impact gold rates.
Currency Fluctuations: While the PKR has strengthened against the US dollar, it’s important to note that currency exchange rates are subject to fluctuations, and these changes may not be immediately reflected in the gold market.
READ MORE: Bullion Market Releases Gold Rates in Pakistan After Month-Long Closure
As the market continues to monitor this intriguing situation, investors and consumers alike will be keen to observe how these factors evolve in the coming weeks and whether the local gold market will adjust in line with the strong Pakistani Rupee or maintain its unique position amid global fluctuations.
