Gold rate plunged Friday following a handsome recovery of the Pakistani rupee against the US dollar, prompting investors to rethink their strategy about shifting towards the safe-haven metal.
Data from the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the prices of gold (24 carats) plunged by Rs4,490 per tola and Rs4,200 per 10 grams to settle at Rs201,600 and Rs172,840, respectively.
The substantial decrease in the price of gold came after the rupee recovered by Rs6.63, or 2.38%, against the US dollar to close at 278.46 in the interbank market.
It should be noted that Pakistan meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country. Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.
Cumulatively, the precious commodity gained Rs12,400 per tola in the previous three sessions.
The precious commodity scaled to an all-time high of 210,500 per tola on January 30, 2023; however, the gold price started receding after the rupee recovered on hopes of revival of the $6.5 billion International Monetary Fund (IMF) bailout programme.
Meanwhile, silver prices in the domestic market fell by Rs60 per tola and Rs51.44 to settle at Rs2,140 per tola and Rs1,834.70 per 10 grams, respectively.