Karachi, October 12, 2023 – Gold rates in Pakistan experienced a notable drop of Rs 7,800 on Thursday, even as the global bullion market saw a surge in prices.
This unexpected trend left domestic investors and consumers with lower gold prices.
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In the local market, the price of 24 karat gold per tola decreased by Rs 7,800, bringing it down to Rs 197,200. Similarly, the rate for 24 karat gold per 10 grams also saw a decline of Rs 6,684, settling at Rs 169,070.
The intriguing aspect of this development is that it occurred concurrently with a significant increase in gold prices in international markets. Globally, the price of gold rose by $13 to reach $1,885 per ounce.
Market experts have attributed this unusual situation to the massive appreciation of the local currency. The Pakistani Rupee (PKR) has witnessed substantial gains against the US dollar in recent weeks, having appreciated by PKR 27.59, equivalent to 9 percent since reaching its lowest point at PKR 307.10 on September 5, 2023.
Despite the remarkable strengthening of the PKR, these gains have not been effectively reflected in the price of gold in the domestic market. The reasons for this disconnect could be multifaceted, including factors such as import costs, local demand, and currency fluctuations.
The situation highlights the complexity of the gold market, where both international and domestic factors can impact prices. It remains to be seen how these dynamics will continue to evolve and whether the local gold market will adjust to better align with changes in the currency exchange rate and global gold prices. For now, this anomaly is of interest to investors and market observers, who will be closely monitoring gold price trends in Pakistan.
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