Karachi, November 16, 2023 – Gold rates witnessed a notable drop of Rs 500 per Tola on Thursday, reflecting a response to the easing conditions in international markets.
The decrease in precious metal prices was observed across various weight categories, with the 24-karat gold per Tola closing at Rs 214,300, down from the previous day’s closing of Rs 214,800 in local markets.
Similarly, the 24-karat gold per 10 grams recorded a decline of Rs 428, settling at Rs 183,728, compared to the previous day’s figure of Rs 184,156. Analysts attribute this downturn in local markets to the overall decrease in prices of precious metals on the global stage.
The decline in gold prices globally was marked by a $2 fall, concluding at $1,986 per ounce, down from the previous day’s $1,988. Market analysts suggest that the ease in international markets played a crucial role in influencing the downward trend observed in local gold rates.
While global market conditions contributed to the drop in gold rates, analysts noted that the depreciation of the local currency prevented a more significant fall in gold prices within the country. The Pakistani Rupee (PKR) sustained its downward trajectory against the US dollar for the 17th consecutive session, closing at PKR 288.14 in the interbank foreign exchange market a day earlier.
This sustained decline represents a loss of PKR 9.35 or 3.53 percent since October 20, 2023, when the exchange rate stood at PKR 278.79. The depreciation in the local currency has provided a level of support to gold prices within Pakistan, acting as a mitigating factor against a more substantial decrease.
Market analysts are closely monitoring the dynamics of both global and local factors that influence gold prices. While international trends play a pivotal role, the interplay with the local currency’s performance adds an additional layer of complexity to market dynamics.
As global economic conditions continue to evolve, the upcoming sessions are likely to be influenced by factors such as geopolitical developments, inflation rates, and currency fluctuations. Investors and consumers alike are advised to stay informed and exercise caution in response to the dynamic nature of the precious metals market.
The recent drop in gold rates, influenced by both international and local factors, presents opportunities and challenges for stakeholders in the gold trade. The continued depreciation of the Pakistani Rupee against the US dollar remains a crucial factor shaping the future trajectory of gold prices in the country. As the market responds to these multifaceted dynamics, informed decision-making becomes paramount for those engaged in the gold market, ensuring resilience and adaptability to changing economic landscapes.
