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Monday July 22, 2024

Gold rates gain over Rs3,000 per tola as rupee takes a hit

"If international rates increase and the rupee continues its weak trend then gold prices might jump even more," says analyst

By Web Desk
August 21, 2023
The picture shows gold necklaces. — AFP/File
The picture shows gold necklaces. — AFP/File 

KARACHI: Gold rates saw a major increase in Pakistan on Monday as the rupee took a hit against the dollar while the international prices also saw a minor gain. 

The price of gold (24 carats) increased by Rs3,100 per tola and Rs2,658 per 10 grams to settle at Rs229,900 and Rs197,102, respectively, according to data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). 

Meanwhile, the price of the yellow metal saw a minute increase in the bullion as it gained $2 to settle at $1,891 per ounce in the international market today.

AA Commodities Director Adnan Agar told Geo.tv that the gold rates in the local market are continuously increasing due to the weaker rupee against the green.

"The decrease in international rates is not impacting the domestic prices as the dollar continues to become stronger. The international rates fell below the 1900 mark but there has been a bounce back today," he added.

Agar said that if the rupee continues to decline and the international prices also fall then this will not impact the local rates of bullion. "The prices might become stable. However, if the international rates increase and the rupee continues its weak trend then the gold rates might jump even more," said Agar.

In the last five sessions, the rates of the precious commodity gained Rs5,000 per tola in the local market.

Data shared by the association showed the price of silver remained unchanged at Rs2,800 per tola and Rs2,400.54 per 10 grams, respectively.