Gold falls by over Rs2,000 as rupee strengthens

KARACHI: The prices of gold in the local market fell on Tuesday for the second time this week as the rupee showed a rich recovery against the dollar after the International Monetary Fund (IMF) deal. 

The price of gold (24 carats) decreased by Rs2,200 per tola and Rs1,887 per 10 grams to settle at Rs205,000 and Rs175,754, respectively, according to data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). 

Meanwhile, the price of the yellow metal increased for the second time by $17 to settle 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 managed to remain unchanged at Rs2,500 per tola and Rs2143.34 per 10 grams, respectively.

Despite an increase in the prices of bullion internationally, the local market saw a decline as the local currency recovered by Rs10.5 against the greenback.

The local currency closed at Rs275.44 against the greenback, gaining Rs10.5 or 3.83% in the interbank market after the government signed a staff-level agreement (SLA) with the International Monetary Fund (IMF) for a $3 billion financing facility.