Karachi, September 11, 2023 – The price of gold took a significant tumble on Monday, reaching Rs 209,400 per Tola, driven by a remarkable appreciation in the value of the Pakistani Rupee (PKR).
This decline in gold rates has persisted for a week, with the precious metal losing a substantial Rs 30,400 during this seven-day losing streak.
READ MORE: Gold Rates in Pakistan on Week-Long Decline Trajectory
As this downward trend in gold prices continues, it has piqued the interest of both investors and consumers, who closely monitor its impact on the precious metal market.
On Monday, the price of 24 karat gold per Tola witnessed a drop of Rs 2,600, closing at Rs 209,400. Meanwhile, the rate of 24 karat gold per 10 grams dipped by Rs 2,229, ending the day at Rs 179,527.
READ MORE: Gold Falling Streak Continues for Fifth Day Amid PKR Appreciation
Market analysts attribute this remarkable decline in gold prices to the substantial appreciation of the Pakistani Rupee against the US dollar. This surge in the Rupee’s strength is part of a broader trend that has seen it gain ground against the dollar for four consecutive days as of Monday.
The local currency appreciated to PKR 301.16 to the dollar, marking a significant turnaround from its all-time low of PKR 307.10 recorded on September 5, 2023.
READ MORE: Gold Rates in Pakistan Witness Around 10% Decline in Four-Day Falling Streak
Interestingly, while gold prices have been on the decline in the Pakistani market, international gold prices exhibited an increase of $7, ultimately closing at $1,926 per ounce. This indicates that the drop in local gold prices is primarily influenced by currency exchange dynamics. The strengthening Rupee has made gold more affordable for Pakistani consumers, contributing to the local price decline.
The ongoing appreciation of the PKR against the US dollar and its subsequent impact on gold prices will be closely monitored by investors and consumers alike. These developments are expected to play a pivotal role in shaping the economic landscape, prompting individuals to make carefully considered financial decisions in the coming days.
READ MORE: Drastic Decline in Gold Rates in Pakistan Amid PKR Recovery
As the global and domestic economic environment remains uncertain, the gold market’s behavior will continue to be influenced by a complex interplay of factors, including currency exchange rates, geopolitical developments, and inflationary pressures. Investors and consumers should remain vigilant and adapt to changing conditions in this volatile market.