After undergoing a correction and following a reduction of prices in the international market, the gold rates witnessed a decline in Pakistan on Saturday.
Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) decreased by Rs4,000 per tola and Rs3,429 per 10 grams to settle at Rs204,500 and Rs175,326, respectively.
Cumulatively, Rs4,500 or 2.15% decline per tola during the week. It is worth mentioning that the precious commodity hit an all-time high of Rs210,500 on Monday and on
The precious commodity’s fall comes after it registered gains for three consecutive sessions amid falling forex reserves and a weak rupee — which will make it costlier as Pakistan meets its gold demand through imports.
Due to foreign debt payments, the State Bank of Pakistan (SBP)-held reserves fell $592 million to $3,086.2 million during the week ended on January 27, their lowest since February 2014, and are barely enough to provide import cover for 18.5 days (0.61 months).
In the international market, gold prices dropped over 2% on Friday to a more than three-week low after stronger-than-expected US jobs data prompted fears that the Federal Reserve could keep increasing interest rates.
Spot gold dipped 2.6% to $1,863.66 per ounce by 1:40 p.m. ET (1840 GMT). Gold is down 2.5% so far this week, marking its biggest weekly fall since early October, with prices having fallen nearly $100 in two sessions.
Meanwhile, silver prices in the domestic market decreased by Rs100 per tola and Rs85.74 per 10 grams to settle at Rs2,250 and Rs1,929, respectively.