As the price of gold dropped in the international market and the USD-PKR exchange rate remained unchanged, the precious metal’s value declined in the domestic market on Wednesday.
The price of gold (24 carats) declined by Rs550 per tola and Rs471 per 10 grams to reach Rs216,850 and Rs185,914, respectively, data from the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.
The yellow metal had reached a record high of Rs218,600 per tola last week. It then dropped to Rs216,000 per tola on April 15 as its rate declined in the international market. It was again on the rise as the current week began.
However, the price of gold fell by $31 to settle at $1,974 per ounce in the international market today. Consequently, the rate in the domestic market also declined.
Another contributor to the fall was the rupee’s value which remained stable, closing at Rs283.89 against the US dollar in the interbank market.
The rupee had fallen to an all-time low of Rs288.43 against the US dollar in the interbank market on April 11. While it has recovered since then, the US dollar continues to trade above Rs280.
The increased demand for the precious metal and the resulting rise in its value can be attributed to the economic crisis prevailing in the country. During times of economic turmoil, people prefer to buy gold, which is considered to be a hedge against inflation and the local currency’s declining value.
Moreover, gold was the top-performing asset in 2022, according to a report by Topline Securities.
Data shared by the association showed that the price of silver in the domestic market remained unchanged at Rs2,530 per tola and Rs2,170 per 10 grams, respectively.