Gold down Rs1,900/tola as rupee strengthens

KARACHI: Recovery in rupee value in the interbank market on Friday resulted in a decline of Rs1,900 in gold price, bringing the price of the commodity down to Rs79,600/tola from Rs81,500/tola recorded on the previous day.

The change was witnessed despite of an increase in gold prices in the international market, as Pakistan rupee recovered by Rs4.06 against dollar in the interbank market. According to rates announced by Karachi Saraf Association, price of 10 gram gold moved down by Rs1,628 to Rs68,244 from Rs69,872 a day ago.

In the international market, gold traded at $1,414 after an increase of $9/ounce from $1,405 a day ago. All Sindh Saraf and Jewellers Association President Haroon Chand told The News that gold prices went down because of appreciation in rupee valuation. “A sharp recovery in rupee and a decline in purchasing power are the major reasons behind this price decline,” he added.

However, he warned, that prices might move upwards again, as there was no improvement in the economy. Gold prices in the local market were still under cost by Rs3,500/tola compared with the rates in the Dubai market, he said. Local prices of gold were under cost by Rs4,000/tola on Thursday.