Gold claws back after reaching historic high

Gold rate witnessed a significant drop in Pakistan Saturday as the yellow metal saw a major reduction in its rate in the international market.

The price of gold (24 carats) dropped by Rs2,600 per tola and Rs2,229 per 10 grams to reach Rs216,000 and Rs185,185, respectively, data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.

The price of gold in the international market dropped $31 per ounce to reach $2,003.

The drop in the precious commodity's price comes a day after it hit a historic high and breached the Rs218,000-mark for the first time, to reach Rs218,600 per tola.

People have been shifting towards bullion as the economic crisis in Pakistan has deepened since last year and the rupee has lost more than half of its value against the dollar.

The yellow metal is considered a hedge against inflation, resulting in an increase in its demand during troubling times and in the current situation, there is seasonal demand for gold due to Ramadan.

According to the data shared by the association, the price of silver in the domestic market remained stable at a record high. The rate of silver clocked in at Rs2,570 per tola and Rs2,203.36 per 10 grams.