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Friday March 01, 2024

Gold rout enters fifth day

Price of gold decreases Rs3,300 per tola and Rs2,829 per 10 grams

February 09, 2023
An undated image of gold jewellery being displayed in a jewellery store. — AFP/File
An undated image of gold jewellery being displayed in a jewellery store. — AFP/File

Pakistani gold’s price continued to deflate for the fifth consecutive day on Thursday as the rupee’s clawback against the dollar tied safe-haven investors' hands amid market buzz that a deal to revive International Monetary Fund’s (IMF) stalled loan programme was almost struck.

According to All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) decreased Rs3,300 per tola and Rs2,829 per 10 grams to settle at Rs194,700 per tola and Rs166,924 per 10 grams, respectively.

Gold has cumulatively lost Rs13,800 per tola since February 4.

If the government is successful in restarting the IMF programme, it will help Pakistan get inflows and boost its forex reserves, however, if the economic uncertainty persists, gold is expected to get dearer as Pakistan imports the yellow metal.

Investors were, however, purchasing only gold bars, not jewellery, which had not only reduced goldsmiths' profit margins but the labour force was also at the stake of losing jobs, as jewellery makers were moving towards other professions in absence of work.

In the international market, gold rose, helped by a pullback in the dollar, although prices are expected to be range-bound as traders await economic data for clues on the US Federal Reserve’s rate-hike path. Gold was up $2 at $1,826 per ounce.

Meanwhile, silver prices in the domestic market decreased Rs40 per tola and Rs34.29 per 10 grams to settle at Rs2,130 and Rs1,826.13, respectively.