close
Wednesday April 24, 2024

Gold price falls by Rs2,000 per tola

Rate of gold (24 carats) reaches Rs233,100 per tola; international price down by $9 per ounce

By Business Desk
May 16, 2023
A representational picture of gold jewellery. — AFP/File
A representational picture of gold jewellery. — AFP/File

The price of gold fell in Pakistan Tuesday in line with developments in the international market, where the rate has been fluctuating because of uncertainty surrounding the US debt ceiling.

The rate of gold (24 carats) decreased by Rs2,000 per tola and Rs1,714 per 10 grams to settle at Rs233,100 and Rs199,846, respectively, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The international rate went down $9 to reach $2,006 per ounce.

The US Congress is yet to raise the federal debt ceiling, which is currently capped at $31.4 trillion. Treasury Secretary Janet Yellen has warned that unless the debt ceiling is raised, the Treasury would run out of cash to pay government bills through June 1, triggering the first-ever US default.

She has also said that it would unleash an "economic and financial catastrophe" for the US and global economies.

Meanwhile, gold has been on an uptrend in Pakistan recently due to several factors — economic and political turmoil, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge.

The safe-haven bullion had reached an all-time high of Rs240,000 per tola on May 10 following increased political uncertainty after Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan's arrest. It dropped later in line with the decline in the international rate.

The jewellers' body also said that local gold was "overcost" by Rs3,500 per tola in Pakistan compared to the Dubai bullion market.

Data shared by the association showed the price of silver also decreased by Rs50 per tola and Rs42.86 per 10 grams to settle at Rs2,950 and Rs2,529.14, respectively.