Karachi, July 24, 2023 – Gold rates experienced a significant surge on Monday due to the depreciation of the Pakistan Rupee (PKR) and a rise in the international markets.
In the local markets, the price of 24 karat gold per tola increased by Rs 2,800, reaching a closing rate of Rs 225,300. Likewise, gold at 24 karats per 10 grams rose by Rs 2,143, closing at Rs 193,158.
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Meanwhile, the international market also witnessed an upward trend in gold prices, with the price per ounce rising by $3 to reach $1,965.
Market analysts attribute the sharp increase in domestic gold rates not only to the surge in international markets but also to the depreciation of the Pakistani Rupee. The PKR has experienced a 7-day losing streak, losing significant value against the US dollar. During this period, it fell by PKR 1.11, closing at PKR 287.92 against the US dollar in the interbank foreign exchange market. This marked a decrease from the previous Friday’s closing rate of PKR 286.81.
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The PKR’s depreciation began on July 14, 2023, and has persisted for seven consecutive trading sessions, causing concern among market participants and economic observers.
It is well-known that domestic gold prices are directly influenced by the exchange rate and the international prices of the precious metal. As the PKR’s value declined against the dollar, the cost of importing gold increased, leading to a sharp rise in local gold rates.
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The increase in gold prices poses challenges for consumers and investors alike. While it provides opportunities for those selling gold, it can create difficulties for individuals and industries reliant on gold for various purposes.
Market experts recommend that investors and consumers closely monitor the currency movements and global gold prices to make informed decisions. Furthermore, economic authorities are closely monitoring the situation and may implement measures to stabilize the currency and mitigate the impact of rising gold prices on the local economy.
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Overall, the sharp increase in gold rates due to PKR depreciation and the rise in international markets is a matter of concern for Pakistan’s economy, and stakeholders will closely watch how the situation unfolds in the coming days.
