Karachi, October 19, 2023 – In a pleasant turn of events for investors and consumers, gold rates in Pakistan have seen a substantial decline of Rs 200 on Thursday.
The drop is attributed to the robust appreciation of the Pakistani Rupee (PKR) against the US Dollar, which has positively impacted the domestic gold market.
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The highly coveted 24-karat gold per Tola has now fallen by Rs 200 to a more affordable Rs 206,300 in the domestic market. Similarly, the 24-karat gold per 10 grams saw a significant decrease of Rs 171, closing the day at Rs 176,869.
This remarkable decrease in gold rates is primarily a result of the Pakistani Rupee’s notable strength against the US Dollar. On Thursday, the Rupee closed at PKR 278.81 in the foreign exchange market, marking a noteworthy gain of PKR 1.48 against the US Dollar compared to the previous day’s closing rate of PKR 280.29 in the interbank foreign exchange market.
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One of the key factors contributing to this surge in the Rupee’s value is the substantial increase in foreign exchange reserves held by the State Bank of Pakistan (SBP). The central bank reported a significant weekly boost of $31 million in its foreign exchange reserves. This newfound strength in foreign exchange reserves has bolstered investor confidence and helped the Rupee gain ground against the US Dollar.
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Notably, while gold rates in the domestic market experienced a decline, the price of the yellow metal in the international market has gone in the opposite direction. In the global arena, the price of gold increased by $13, reaching $1,972 per ounce. This dynamic indicates that the fluctuations in gold prices are influenced by both global and local economic factors, including currency exchange rates, international demand, and geopolitical events.
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As the PKR continues to strengthen and foreign exchange reserves rise, it will be interesting to see how these factors continue to impact the gold market in Pakistan. For now, consumers and investors can benefit from more favorable gold rates within the country, providing an attractive opportunity for those interested in precious metal investments.
