Gold price falls by Rs1,400 per tola in Pakistan

KARACHI: Following fluctuation in the international market, gold price in Pakistan on Monday has declined by almost 1%, while local currency struggles to gain strength against US dollar.

According to data released by All Sindh Sarafa Association, the price of gold descended by Rs1,400 per tola and Rs1,200 per 10 grams. The precious metal settled at Rs145,600 and Rs124,828.

Earlier in the week, the commodity gained Rs4,400 per tola on August 27, 2022.

The association determines local prices based on rupee-dollar parity and international rates. According to market practice, local prices of gold usually go down on the rupee's appreciation against the US dollar and rising prices of commodities in the international market.

However, the analysts and the market players are surprised about the declining gold prices despite the depreciation of the local currency.

In the international market, the price of the yellow metal dropped by $10 per ounce to settle at $1,728 to as US Federal Reserve Chair Jerome Powell acknowledged that a quick undo of the US central bank’s rate tightening was far from over, boosting the dollar.

It should be noted that the gold price stands below cost and is cheaper by Rs7,000 per tola compared to Dubai.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,530 per tola and Rs1,311.72 per 10 grams today.