Gold rates decline by Rs1,300 per tola as week ends

KARACHI: Gold in Pakistan closed the week on Saturday on a negative note as the prices fell in line with a decline in the international rates.

The price of gold (24 carats) lost Rs1,300 per tola and Rs1,115 per 10 grams to settle at Rs213,200 and Rs182,785, respectively, according to data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), 

Meanwhile, the price of the yellow metal also declined in the international market today as it lost $4 to settle at $1,955 per ounce.

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

Data shared by the association showed the price of silver remained unchanged at Rs2,650 per tola and Rs2,271.94 per 10 grams.

In the last two sessions — Thursday and Friday — the rates of the yellow metal gained Rs10,500 cumulatively.

AA Commodities Director Adnan Agar cited the weakening of the US currency as the reason behind the increase in international prices which led to an increase in the local prices as well.

"The major reason for the increase in the local market is because of the international rates as the dollar against other currencies has been weakened internationally. The dollar and gold go inverse, if the dollar weakens then gold raises," Agar explained the reason behind the rise in rates.

Meanwhile, the local currency fell by 0.41% against the greenback in the interbank market, closing the week at Rs277.59, according to the data shared by the State Bank of Pakistan (SBP).