KARACHI: Following the strengthening of the Pakistani Rupee versus the US dollar on Thursday, industry insiders reported that gold prices in Pakistan fell by Rs5,400 per tola.The All Sindh Saraf Jewellers Association reported that the local market’s price for gold has dropped to Rs229,000 per tola. Likewise, the cost of 10 grammes of gold dropped by Rs4,629 to Rs196,331.
The price of gold on the international market, however, increased somewhat by $7, rising to $1,967 per ounce. On the other hand, local market silver prices fell by Rs50 and settled at Rs2,750 per tola. The cost of 10 grammes of silver also decreased by Rs 4,286 to Rs 2,357.68. It is important to note that on May 10, gold prices in Pakistan rose to an all-time high of Rs. 240,000 per tola while international gold prices were trading at $2,031 per ounce. The price of silver in the nation had risen to Rs3,100 per tola.
One analyst blamed the historic strengthening of the rupee against the dollar for the abrupt drop in gold prices. On Thursday, the rupee significantly increased in value when compared to the US dollar. In the open market, the dollar was quoted between 295 and 300, down from a day earlier when it was quoted between 311-314.
Senior jeweller in the city Muhammad Shafi Khan backed up this assertion by claiming that the strengthening of the rupee was the primary cause of the decline in gold prices. Khan observed that there was still a sizable demand for unprocessed gold in the nation despite the price decline. Considering that there was a finite amount of dollars available and that gold was still seen as a safe haven, he noticed that even private investors were switching their holdings from real estate to gold.The market panic brought on by the sharp increase in gold prices and the paucity of gold in the open market, where it has been hoarded, alarmed Khan, though. While local market rates are often higher than those on the global market, the difference has recently shrunk as a result of the weakening of the global market and the strengthening of the rupee, he said.
However, the rising cost of gold means that jewellers and their staff continue to be under pressure, and the majority of people’s purchasing power has declined. Khan issued a warning that gold prices would surge again if the economy does not remain steady and the dollar rate rises once more.Investors are turning their attention to raw gold in the shape of bars and biscuits due to the current economic and political issues, as jewellery sales are still weak and workers are under further pressure.