Gold makes sharp decline as rupee shows recovery

KARACHI: Prices of gold in Pakistan took a massive decline on Monday by falling over Rs8,000 per tola as the rupee made a recovery against the dollar in the open market. 

The price of gold (24 carats) decreased by Rs8,800 per tola and Rs7,544 per 10 grams to settle at Rs207,200 and Rs177,641, respectively, according to data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). 

Meanwhile, the price of the yellow metal increased by $9 to settle at $1,912 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 also fell by Rs50 per tola and Rs42.87 per 10 grams to settle at Rs2,500 and Rs2143.34, respectively.

Despite an increase in the prices of bullion internationally, the local market saw a decline as the local currency recovered by Rs5 against the greenback.

In the open market, the rupee appreciated Rs5 to close at Rs285 after the government signed a staff-level agreement (SLA) with the International Monetary Fund (IMF) for a $3 billion financing facility.

The interbank rate was not available today due to a bank holiday.