Karachi, August 28, 2023 – Despite a depreciating rupee and a modest uptick in global markets, gold rates in Pakistan took an unexpected dip on Monday, with prices falling by Rs 1500 per Tola.
This comes as a surprise to many, as the Pakistani rupee hit a record low against the dollar on the same day, reaching PKR 302 to 1 USD.
READ MORE: Gold Prices in Pakistan Slide as Global Market Dips
The 24 karat gold per Tola saw a significant decline of Rs 1500, closing at a rate of Rs 233,000 in the local markets. Similarly, the price of 24 karat gold per 10 grams also slipped, down by Rs 1286, closing at Rs 199,760. These price fluctuations have left investors and consumers puzzled as they tried to make sense of the seemingly contradictory trends in the market.
The gold market in Pakistan has long been influenced by two primary factors: exchange rates and international gold prices. Typically, any surge in the international market or depreciation in the rupee’s value leads to an increase in gold prices within the country. However, this time around, the situation unfolded differently.
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On August 28, 2023, the Pakistani rupee reached an unprecedented low, plummeting to PKR 302 against the US dollar. This sharp depreciation in the currency should have, by conventional wisdom, driven gold prices higher. Yet, in stark contrast, gold rates in Pakistan experienced a decline.
In the global market, gold prices showed a minor increase of just $1, reaching a closing price of $1915 per ounce. This subtle uptick in international gold prices was not significant enough to counterbalance the impact of the weakened Pakistani rupee on the local market.
READ MORE: Gold Prices Soar by Rs 3,100 as PKR Takes a Dive Against the Dollar
Economists and financial experts are now closely monitoring the situation, attempting to understand the unique circumstances that led to this unexpected trend. One theory suggests that market dynamics and local factors may have played a more dominant role in this instance, offsetting the usual correlation between currency depreciation and gold price hikes.
READ MORE: Gold Prices Rise in Pakistan on August 18 Despite Global Market Decline
As Pakistan’s economy continues to navigate through these challenging times, investors and consumers alike will remain vigilant, hoping for stability and predictability in the gold market, which has always been a barometer of economic health in the country.
