Karachi, July 12, 2023 – Gold prices in Pakistan experienced a slight decline of Rs500 per tola on Wednesday as the Pakistani Rupee (PKR) gained value against the US dollar. This development has contributed to a declining trend in the local gold market.
The price of 24-karat gold per tola concluded the day down by Rs500, settling at Rs204,000 in local markets. Similarly, the price of 24-karat gold per 10 grams slipped by Rs429 to close at Rs174,897.
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Market experts attribute this decline in gold prices to the appreciation of the local currency. The Pakistani Rupee strengthened against the US dollar, with an interbank foreign exchange market closing rate of PKR 277.48 to the dollar on Wednesday, compared to the previous day’s closing rate of PKR 278.57.
Interestingly, the gold rates in the domestic market are showing a downward trend despite a surge in international markets. In global trading, gold prices rose by $14 to reach $1,946 per ounce.
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The factors contributing to the decline in gold prices locally, despite the international market’s upward movement, can be attributed to various economic factors. A strengthening of the Pakistani Rupee against the US dollar makes gold imports less expensive, reducing the overall demand for gold in the country.
Investors and consumers in Pakistan often monitor fluctuations in the gold market closely. Gold is considered a safe-haven asset and a popular investment choice for individuals seeking stability and protection against inflation. Therefore, changes in gold prices can have a significant impact on the overall sentiment in the market.
READ MORE: Gold Rate Drops by PKR 200 Despite International Market Rise
It remains to be seen how the gold market in Pakistan will respond to these recent developments. Market participants will continue to monitor the interplay between the local currency’s value and international gold prices to gauge future trends and investment opportunities.
