Karachi, July 26, 2023 – Gold rates in Pakistan witnessed a significant decline on Wednesday, following a rebound of the Pakistani Rupee (PKR) against the US dollar.
The strengthening of the local currency has led to a dip in gold prices in the country.
READ MORE: Gold Rates in Pakistan Decline by Rs800 on July 25, 2023 Amidst International Market Fall
In the local market, the price of 24-karat gold per tola dropped by Rs 2,400, settling at Rs 222,180. Similarly, the rate of 24-karat gold per 10 grams declined by Rs 2,058, closing at Rs 190,415.
The gold prices in Pakistan are influenced by factors such as fluctuations in the international market and changes in domestic exchange rates. Interestingly, while the gold rate increased by $12 in the international market, closing at $1,972 per ounce, it experienced a sharp decline in the Pakistani market due to the strengthening of the PKR.
READ MORE: Gold Rates Increase Sharply on PKR Depreciation and International Market Rise
The Pakistani Rupee rebounded against the US dollar on July 26, 2023, after experiencing eight consecutive days of losses. The rupee closed at PKR 287.04 to the dollar in the interbank foreign exchange market, a noticeable improvement from the previous day’s closing rate of PKR 288.52.
The increase in the value of the PKR against the dollar has played a significant role in pushing down the gold rates in the local market. A stronger rupee makes imports cheaper, including gold, which is priced in US dollars globally. As the exchange rate improves, the cost of imported gold decreases, resulting in a subsequent drop in gold prices for consumers in Pakistan.
READ MORE: Gold Prices Soften in Pakistan as International Market Sees Decline
This development may be seen as positive news for gold buyers in the country, as they can take advantage of the reduced prices. On the other hand, investors and traders in the gold market may closely monitor the international gold rates and the fluctuations in the exchange rates to make informed decisions about their investments.
READ MORE: Pakistan Gold Prices Increase by Rs 1,800 as Rupee Depreciation Persists
As both the international market and the currency exchange rates remain dynamic, the gold rates in Pakistan are subject to further fluctuations. The authorities and investors will keep a close watch on these developments, as they can have significant implications for the country’s economy and the purchasing power of consumers.
