- Gold price settles at Rs145,500 per tola.
- Since dollar has dropped in open market, association has adjusted downward bullion price.
- Silver prices in domestic market remained unchanged.
KARACHI: Gold price in Pakistan declined despite rising international prices as rupee appreciation weighed on investors’ sentiment refraining them from investing.
The gold price declined by Rs400 per tola and Rs343 per 10 grams to settle at Rs145,500 per tola and Rs124,743 per 10 grams, data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.
The trend of gold is mostly related to rupee-dollar parity, and international gold prices have been a bearish catalyst for bullion.
Pakistan meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country. Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.
Since the dollar has dropped by over Rs5 in the open market, the association has adjusted down the bullion price accordingly.
In the international market, the price of the yellow metal rose by $13 per ounce settling at $1,664 thanks to a softer dollar, but non-yielding bullion was headed for its biggest quarterly decline since March last year on an ongoing aggressive monetary policy stance by central banks worldwide.
Gold rates in Pakistan are around Rs2,000 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in domestic market remained unchanged at Rs1,560 per tola and Rs1,337.44 per 10 grams.
With gold under pressure, silver should also continue to struggle to outperform but a clear positive turn in gold holds considerable risks for silver.
