Karachi, November 18, 2023 – Gold rates in Pakistan took a noteworthy plunge on Saturday, witnessing a decrease of Rs 1,400 per Tola, driven by the appreciation of the local currency and a downturn in the global markets.
The 24-karat gold per Tola concluded at Rs 215,100, marking a decline from the previous day’s closing figure of Rs 216,500.
Similarly, the 24-karat gold per 10 grams also experienced a dip of Rs 1,200, settling at Rs 184,414 compared to the previous day’s closing of Rs 185,614 in the domestic markets.
Market experts have attributed the decline in domestic gold prices to the strengthening of the Pakistan Rupee (PKR) against the US dollar over the weekend, coupled with a general easing in the international markets.
The Pakistani Rupee (PKR) displayed a notable upswing against the US dollar, closing at PKR 286.50 in the interbank foreign exchange market on November 17. This positive movement represented a gain of 88 paisas over the previous day’s closing rate of PKR 287.38. Analysts point to recent key developments, particularly the successful Staff-Level Agreement (SLA) reached between the International Monetary Fund (IMF) and Pakistani authorities, as a driving force behind the PKR’s appreciation.
In tandem with the local currency’s gains, the prices of the precious metal saw a decline of $5, reaching $2,001 per ounce in the international market.
The link between currency dynamics and gold prices is a well-established phenomenon, and the recent appreciation of the PKR has provided relief to gold buyers in Pakistan. A stronger local currency typically makes imported commodities, such as gold, more affordable for consumers.
The decline in global gold prices, reflected in the $5 drop per ounce, further contributed to the decrease in domestic rates. International market dynamics play a pivotal role in shaping gold prices globally, and the recent easing in these markets has influenced the cost of gold in Pakistan.
While gold prices can be subject to fluctuations based on various economic factors, the recent developments in both the local and global contexts have resulted in a more favorable scenario for consumers in Pakistan looking to purchase gold.
As the market continues to respond to currency movements and global trends, stakeholders will closely monitor these developments to gauge potential future shifts in gold prices. The recent decline, however, reflects the dynamic nature of the gold market and its susceptibility to a range of external factors.
