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Saturday June 15, 2024

Gold rate sees massive decline in Pakistan

Gold rates decline in line with price movement in the international market

By Business Desk
March 21, 2023
An undated image of a goldsmith showing a gold ornament to a customer. — AFP/File
An undated image of a goldsmith showing a gold ornament to a customer. — AFP/File

Gold extended losses into a second session on Tuesday, closing slightly above the threshold of Rs204,000 per tola in line with price movement in the international market.

The price of gold (24 carats) fell by Rs3,100 per tola and Rs2,658 per 10 grams to settle at Rs204,200 and Rs175,068, according to data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).

Gold plunged in line with the dollar’s value (in Pakistan) 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 Rs13,000 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 continued to decline for the second day after rising above $2,000 an ounce in the last session, as investors turned their attention from the banking crisis to the US Federal Reserve's interest rate decision. The per-ounce price settled at $1,968 after a decline of $14.

The metal had hit $2,009.59 an ounce on Monday, its highest since March 2022 but soon started to retreat. However, there is some caution in the market now ahead of the Fed rate decision.

Bullion has gained over $100 in the international market after the collapse of US-based Silicon Valley Bank earlier this month, as investors scrambled for the safe haven.

Meanwhile, silver prices in the domestic market declined by Rs50 per tola and Rs42.86 per 10 grams to settle at Rs2,200 and Rs1,886.14, respectively.