Karachi, July 3, 2023: The gold rate in Pakistan experienced a significant crash on Monday as market participants anticipated an appreciation of the Pakistan Rupee (PKR) against the US Dollar (USD) following a recent deal with the International Monetary Fund (IMF).
In the local market, the price of 24 karat gold per Tola plummeted by Rs8,800 to close at Rs207,200, compared to the previous closing price of Rs216,000. Similarly, the price of 24 karat gold per 10 grams slipped by Rs7,544 to end at Rs177,641, down from the previous closing price of Rs185,185.
Financial experts attribute this decline to the expectations of a PKR appreciation against the USD. The currency market has been closed since June 27, 2023, due to Eid Holidays and Bank holiday. It is set to reopen on Tuesday, July 4, 2023, and experts anticipate a substantial gain in the local currency due to the successful deal reached with the IMF.
Last week, the IMF announced a Staff-Level Agreement (SLA) with Pakistan for a $3 billion loan program under a nine-month Stand-By Arrangement (SBA). This agreement has created optimism in the market, leading to expectations of improved exchange rates and a stronger PKR.
Meanwhile, in the international market, gold prices saw a surge of $6, reaching $1,912 per ounce.
Market analysts predict that in the coming days, the gold rate in the local market may witness further declines due to the anticipated strengthening of the PKR against the USD and the improved exchange rates resulting from the IMF deal.
In other economic news, the Pakistan Stock Exchange (PSX) started the week on a positive note, as it experienced a historic single-day gain of 5.9 percent or 2,446 points, closing at 43,899 points on July 3, 2023.
As the currency market reopens and investors analyze the implications of the IMF deal, the gold market is expected to respond accordingly. Traders and investors will closely monitor the exchange rates and any further developments that may impact the gold prices in the local market.
READ MORE: Gold Rises by Rs1,800 in Pakistan Amid Fall in International Markets
