Karachi, December 8, 2023 – The gold market in Pakistan experienced a notable decline on Friday, with rates dropping by Rs 300, despite global prices remaining relatively stable.
The 24-karat gold per Tola concluded at Rs 218,600, marking a decrease from the previous day’s closing of Rs 219,900. Similarly, the rate for 24-karat gold per 10 grams saw a dip of Rs 257, settling at Rs 187,414 compared to the previous day’s closing of Rs 187,671 in the local markets. Conversely, international gold prices held firm at $2,050.
Financial analysts and market experts have attributed the downward trend in local gold prices to the recent depreciation of the Pakistani Rupee (PKR) against the US dollar. The local currency has been gradually strengthening against the greenback over the past few days, impacting various sectors, including the precious metals market.
The relationship between exchange rates and gold prices is a well-established economic phenomenon. In this context, the depreciation of the PKR has led to a decline in the local prices of gold. Since gold is primarily imported in Pakistan, a lower exchange rate against the US dollar has a direct impact on the cost of imported gold, subsequently contributing to the reduced prices observed in the local market.
The recent fluctuations in the exchange rate have provided a unique economic backdrop. The PKR’s improved standing against the US dollar has generally been viewed as positive for various sectors of the economy, facilitating cheaper imports and contributing to the decline in the prices of imported goods, including gold.
The gold market in Pakistan is highly sensitive to global trends, and any changes in international prices can significantly impact local rates. Despite the stability in global gold prices at $2,050, the interplay of local economic factors, such as currency fluctuations, has caused a notable shift in the domestic market.
Experts anticipate that the trend in gold prices will continue to be influenced by the performance of the Pakistani Rupee in the coming days. Additionally, global geopolitical developments and economic indicators will also play a crucial role in determining the trajectory of gold prices on both the international and domestic fronts.
While the decline in gold prices may be seen as a favorable development for consumers and investors looking to enter the market, it underscores the interconnected nature of the global economy. As Pakistan navigates through economic changes, the fluctuation in gold prices serves as a reminder of the intricate balance between local and international factors that shape the dynamics of the precious metals market.
Investors and market participants will keenly observe the upcoming economic indicators and policy decisions that could further impact the gold market, making informed decisions in response to the evolving landscape of both local and global financial markets.
