close
Tuesday May 28, 2024

Gold loses shine in Pakistan as demand decreases in Muharram

Price of gold (24 carats) falls by Rs5,300 per tola and Rs4,544 per 10 grams

By Web Desk
July 20, 2023
An undated representational image of a gold ornament. — AFP/File
An undated representational image of a gold ornament. — AFP/File

KARACHI: The price of gold in Pakistan took a steep decline after gaining for three consecutive sessions amid a lesser demand with the start of the month of Muharram.

The price of gold (24 carats) falls by Rs5,300 per tola and Rs4,544 per 10 grams to settle at Rs221,100 and Rs189,558, respectively, according to data issued by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). 

However, the price of the yellow metal gained $5 to settle at $1,978 in the international market today.

During the month of Muharram — which marks the beginning of the new Islamic year — the demand for bullion decreases in the local market.

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 Rs2,900 per tola and Rs2,486.28 per 10 grams.

In the last three sessions — Monday, Tuesday and Wednesday — the gold rates increased by Rs13,200 per tola ahead of Muharram.

Meanwhile, the local currency also fell by 0.47% against the greenback in the interbank market today, according to the data shared by the State Bank of Pakistan (SBP).

The rupee closed at Rs285.15 against the dollar.