Gold Prices Rally in Pakistan, Surpassing Rs. 223,000 per Tola Mark
Depreciation of local currency contributes to consecutive hikes in the cost of gold
August 16, 2023
Gold prices in Pakistan have seen a consecutive rise for the second time this week, with an increment of Rs. 900 per tola recorded on Wednesday. The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) released data confirming that the cost of 24-carat gold surged by Rs. 900 per tola, settling at Rs. 223,800. Simultaneously, the price for 10 grams of gold increased by Rs. 771, reaching a closure rate of Rs. 191,872.
The most recent increase comes after Tuesday’s upsurge of Rs. 1,100 per tola, leading to an accumulated two-day increase of Rs. 2,000 per tola.
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Concurrently, the Pakistani rupee continued its downward trend against the US dollar, depreciating by 1.16 percent in the inter-bank market and closing at 294.93. While minor fluctuations in the currency exchange rate usually have limited effects on the local gold value, the ongoing depreciation of the rupee raises concerns of potential future hikes in gold prices.
On the global scale, the international market also saw a modest rise in gold prices. Spot gold experienced a 0.1 percent increase, reaching $1,902.50 per ounce around 1207 GMT. Conversely, US gold futures underwent a minor decrease of 0.1 percent, settling at $1,934.00.
These developments are closely observed by investors and experts as they navigate the intricacies of both local and international markets. The recent pattern of rising gold prices in Pakistan, combined with the fluctuations in currency exchange rates, emphasizes the delicate equilibrium that governs the value of this precious metal in the country.
As economic factors continue to play a pivotal role in influencing gold prices, stakeholders remain vigilant for any potential shifts that could impact this crucial aspect of Pakistan’s economic landscape.