- Gold price drops by Rs200 per tola to reach Rs130,550.
- Bullion rates in Pakistan are around Rs6,000 below cost.
- Silver prices in the domestic market remain unchanged.
KARACHI: Gold price in Pakistan dropped by Rs200 per tola in Pakistan despite rupee depreciation — which hit to an all-time low of Rs178.98 against the US dollar on Monday.
According to All Sindh Sarafa Jewellers Association (ASSJA), gold prices in the local bullion market dropped by Rs200 per tola to reach Rs130,550, while the price of 10 grams gold decreased by Rs172 to reach Rs111,925.
A day earlier, the precious commodity closed at Rs130,750 per tola and Rs112,097 per 10 grams.
Cumulatively, the yellow metal had gained Rs1,350 per tola in the domestic market during the week that ended March 12.
Analysts were surprised over a decline in the gold price as past practices suggest that people used to take aggressive positions in gold in inflationary days.
However, they believe that investors — especially the young investors — are now taking aggressive positions in cryptocurrencies to make quick gains.
Speaking to Geo.tv, a gold dealer said that investing in gold is a safe bet against rupee depreciation or devaluation.
“People may also invest directly in the dollar to take a similar advantage, but some investors are more inclined towards the traditional shining asset,” he said.
He, however, said that Pakistan remains a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the commodity locally.
Accordingly, the gold price for local markets is determined keeping in view its prices in world markets, rupee-dollar exchange rate and its demand and supply in local markets.
In the international market, bullion price dropped by $20 per ounce to settle at $1,966.
Gold rates in Pakistan are around Rs6,000 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,480 per tola and Rs1,268.86 per 10 grams today.
