Karachi, July 4, 2023: The gold rate in Pakistan experienced a notable decline on Tuesday, despite a surge in international markets. The price of gold per tola (24 karat) fell by Rs2,200 to end at Rs205,000 in the local markets, compared to the previous day’s closing of Rs207,200.
Similarly, the price of gold per 10 grams (24 karat) recorded a decline of Rs1,887, reaching Rs175,754 in the local market, compared to the previous day’s closing of Rs177,641.
In contrast, the international gold rate saw a gain of $17, ending at $1,929 per ounce. However, the local gold market experienced a significant drop due to the sharp appreciation of the Pakistani Rupee (PKR) against the US dollar. This marked the second consecutive day of substantial declines in gold prices in the domestic market.
READ MORE: Gold Rate Crashes in Pakistan Anticipating PKR Appreciation to USD
Experts attribute the decline in the dollar value to Pakistan’s agreement with the International Monetary Fund (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 generated optimism in the market, leading to expectations of improved exchange rates and a stronger PKR.
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.
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 gold prices in the local market.
READ MORE: Gold Rises by Rs1,800 in Pakistan Amid Fall in International Markets
