Karachi, August 16, 2023 – In the wake of a significant decline in the value of the Pakistani rupee (PKR), gold prices in Pakistan soared by Rs 900 on Wednesday.
The local market saw a notable increase in the price of 24 karat gold per tola, which concluded at Rs 223,800. Similarly, the rate for 24 karat gold per 10 grams surged by Rs 771, ending the day at Rs 191,872.
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Industry experts attributed this rapid upswing in gold prices to the considerable depreciation of the PKR against the US dollar. The Pakistani rupee (PKR) experienced a sharp decline of PKR 3.42, finishing at PKR 294.93 in the interbank foreign exchange market. This fluctuation in exchange rates has served as a catalyst for the surge in gold prices, which often exhibit an inverse relationship with the strength of the local currency.
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The upward movement in precious metal rates mirrored international market trends. Globally, the price of gold climbed by $2, reaching $1,905 in the international markets. This connection between domestic and international gold prices underscores the global nature of the precious metals trade and its susceptibility to economic fluctuations across borders.
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The domestic gold market in Pakistan is intrinsically tied to international gold prices and exchange rates, making it particularly sensitive to geopolitical and economic shifts. As such, market participants keep a keen eye on international developments, as they can directly impact the local gold market.
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Investors and consumers alike are advised to monitor both global economic indicators and local currency movements to anticipate potential trends in gold prices. As the market remains dynamic, the interplay of these factors will continue to shape the trajectory of gold prices in Pakistan.
