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Monday April 22, 2024

Gold falls below Rs205,000 mark in Pakistan

Gold price declines by Rs2,900 per tola during two sessions (Saturday-Monday)

By Web Desk
March 27, 2023
An undated image of a gold set displayed at a jewellery store. — AFP/File
An undated image of a gold set displayed at a jewellery store. — AFP/File

Extending its losses for a second trading day, the gold price on Monday fell below Rs205,000 as the euphoria over the International Monetary Fund (IMF) deal fizzled and investors shifted their focus to Finance Minister Ishaq Dar’s negotiations with friendly countries for loans to avert a looming economic disaster in Pakistan.

According to the data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) declined by Rs1,100 per tola and Rs944 per 10 grams to settle at Rs204,600 and Rs175,411.

The price of gold has lost Rs2,900 per tola during the two sessions (Saturday-Monday). Meanwhile, it cumulatively, 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.

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 Rs10,000 per tola “undercost” in Pakistan, as compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global.

Meanwhile, silver prices in the domestic market remained unchanged at Rs2,250 per tola and Rs1,929 per 10 grams, respectively.

In the international market, gold price slipped as a rebound in equities dented the metal's safe-haven appeal, while investors evaluated steps taken by authorities to calm fears of a crisis in the global banking system. The per-ounce price settled at $1,950 after a decline of $28.

"After kissing the psychological $2,000 level last week, bears exploited this resistance to attack. Appetite for the precious metal has also been dampened by a stabilising dollar and mixed signals on monetary policy from the Fed," said Lukman Otunuga, senior research analyst at FXTM.