Karachi, July 21, 2023 – Gold prices in Pakistan experienced an increase of Rs 1,800 as the depreciation of the rupee continued. The value of 24-karat gold per tola fell by Rs 1,800 to Rs 222,900 in the local market. Meanwhile, the price of 24-karat gold per 10 grams declined by Rs 1,542 in the domestic market.
READ MORE: Gold Prices in Pakistan Witness Unanticipated Drop Amid Currency Devaluation
Market analysts attributed the rise in gold prices to the devaluation of the Pakistani Rupee (PKR). On July 21, 2023, the PKR closed at PKR 286.81 against the US dollar, showing a decline of PKR 1.66 from the previous day’s closing rate of PKR 285.15 in the interbank foreign exchange market. This marked the end of a six-day losing streak for the Pakistani Rupee against the dollar since July 13, 2023.
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It is worth mentioning that the domestic gold prices are directly influenced by the exchange rate and international gold prices. As the rupee depreciates against the dollar, the cost of importing gold increases, leading to higher local gold prices.
READ MORE: Gold Rate in Pakistan Surges Sharply to Reach Rs 221,000 per Tola
Moreover, in international markets, the price of gold decreased by $12 to close at $1,966 per ounce on the same day.
The volatile economic conditions, including the fluctuating exchange rate and international gold prices, have been closely watched by investors and consumers alike. As the situation continues to evolve, market participants will closely monitor further developments in both the currency and gold markets.
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