Karachi, July 5, 2023 – The gold rate in Pakistan experienced a significant surge of Rs1,000 on Wednesday, despite a slight decline in the international market.
The price of 24 karat gold per tola rose by Rs1,000, reaching Rs206,000 in local markets. Similarly, the rate of 24 karat gold per 10 grams increased by Rs858, concluding at Rs176,612 in the domestic markets.
In contrast to the local trend, the price of gold in the international market observed a slight decrease of $1, closing at $1,928 per ounce.
Experts in the market attribute the rise in gold rates to the depreciation of the Pakistani Rupee (PKR) against the US dollar. The local currency witnessed a decline of PKR 1.97, settling at PKR 277.41 to the dollar in the interbank foreign exchange market, compared to the previous day’s closing rate of PKR 275.44.
The depreciation of the PKR against the dollar causes imported commodities, including gold, to become more expensive in the domestic market. Consequently, local gold prices increased despite the decline in the international market.
Gold holds significant popularity as an investment option in Pakistan, with many individuals considering it a safe haven during times of economic uncertainty. Fluctuations in gold rates can have a substantial impact on investor sentiment and influence buying and selling decisions.
Investors and consumers closely monitor gold rates as they assess the viability of purchasing or selling gold. The interplay between global factors, such as international gold prices, and local elements, including currency fluctuations, shapes the dynamics of the gold market in Pakistan.
Market participants are advised to stay informed about the latest developments in the gold market and consider various factors before making investment decisions. Additionally, the State Bank of Pakistan and regulatory authorities maintain vigilant monitoring of the market to ensure transparency and maintain a fair trading environment.
As the gold rate continues to fluctuate, the future developments in global and domestic markets will determine the impact on the prices of this precious metal in Pakistan.
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