Saturday June 22, 2024

Gold price falls by Rs1,700 per tola for second straight day

Safe-haven bullion had cumulatively lost Rs1,100 per tola last week

By Business Desk
May 30, 2023
A shop manager examines a gold bracelet at a jewellery shop in Mumbai, India on Aug 11, 2021. — AFP
A shop manager examines a gold bracelet at a jewellery shop in Mumbai, India on Aug 11, 2021. — AFP

The rate of gold declined for the second straight day Tuesday, despite an improvement in the safe-haven bullion's value in the international market.

The price of gold (24 carats) decreased by Rs1,700 per tola and Rs1,458 per 10 grams to reach Rs232,800 and Rs199,588, respectively, according the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The gold rate cumulatively lost Rs1,100 per tola last week, and a further Rs1,700 on the opening day this week.

Meanwhile, the international price went up $11 to settle at $1,956 per ounce.

The safe-haven bullion's value has remained volatile in the international market recently. However, it bounced back from its lowest level in over two months Tuesday after the US dollar's value declined from a high and investors remained anxious about negotiations on the US debt ceiling.

If the debt ceiling — which is currently capped at $31.4 trillion — is not raised in the next few days, it would trigger the first-ever US default.

Investors also remained wary about a possible hike in the interest rate, which would negatively affect gold's value.

Meanwhile, the gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge.

The rupee gained Re0.07 or 0.02% against the US dollar in the interbank market Tuesday, closing at Rs285.35, according to State Bank of Pakistan data.

Data shared by the jeweller's body showed that the rate of silver remained unchanged at Rs2,850 per tola and Rs2,443.41 per 20 grams, respectively.