Gold extends losses in Pakistan, price falls by Rs200 per tola

KARACHI: The gold price in Pakistan on Thursday continued to decrease for the fifth consecutive session in line with the developments in the international market and the rupee's appreciation against the dollar. 

The price of gold (24 carats) decreased by Rs200 per tola and Rs172 per 10 grams to settle at Rs218,500 and Rs187,328, respectively, according to the data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). 

Meanwhile, the price of the yellow metal also declined by $5 and settled at $1,929 per ounce in the international market today.

The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, and high inflation. People prefer to buy this precious commodity in such times as a safe investment and a hedge.

Data shared by the association showed the price of silver remained unchanged at Rs2,550 per tola and Rs2,186.21 per 10 grams.

It also mentioned that the price of the bullion is Rs4,000 per tola “undercost” in Pakistan as compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global.

Meanwhile, the local currency strengthened for the third consecutive day against the greenback by increasing Rs0.25 or 0.09% and closed at Rs286.73 in the interbank market on Thursday.

“The need for dollars for imports and other payments did not rise today. Due to remittances that Pakistanis living abroad sent home for Eid ul Azha, the dollar's supply increased, which helped the rupee strengthen versus the dollar,” said a currency dealer a day earlier.

The rupee's future path is being closely watched by market participants as developments relating to the International Monetary Fund (IMF) lending programme take place.

On the eve of the next New Global Financing Pact Summit, which will be held in Paris from June 22–23, Pakistan has requested that the IMF set up a meeting between Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva.