Gold dropped nearly 1% in Pakistan on Saturday as investors look for a clear direction as the rupee hold ground against the US dollar fading the shine of the yellow metal.
According to the data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) plunged by Rs1,800 per tola and Rs1,543 per 10 grams to settle at Rs205,700 and Rs176,355.
Cumulatively, the precious commodity lost Rs2,600, or 1.25%, per tola during the short week ending on March 25 — as the precious commodity registered losses in four out of the five sessions as the market remained closed on March 23.
A day earlier, the bullion price jumped by Rs5,600 per tola as local markets reopened after a day off due to a public holiday on account of Pakistan Day.
Gold price moves in line with the rupee-dollar parity as the country 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.
The association also mentioned that the price of gold is Rs16,000 per tola “undercost” in Pakistan, as compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global.
In the international market, gold dipped in a volatile week that saw bullion prices north of the key $2,000 figure as bank contagion fears bolstered both safe-haven demand and bets on a pause in Federal Reserve rate hikes.
The per-ounce price settled at $1,978 after a decrease of $19.
Meanwhile, silver prices in the domestic market gained Rs30 per tola and Rs25.71 per 10 grams at Rs2,250 per tola and Rs1,929 per 10 grams, respectively.