KARACHI: Gold prices in Pakistan fell, falling to Rs135,900 a tola due to a weakening local currency.
In the local market, gold 24kt rose Rs600/tola and Rs514/10grammes to Rs135,900/tola and Rs116,512/10grammes, respectively.
In the local market on Thursday, the precious metal hit an all-time high of Rs136,000/tola, as Pakistan’s foreign reserves, increasing trade deficit, and uncertainty about the IMF loan program put the local currency under pressure.
The government is striving to give assistance to the local unit, with the Extended Fund Facility (EFF) negotiations with the IMF looming in the next week, and delays in the finalization of loan programs from friendly nations further depreciating the rupee.
On Saturday, silver prices remained steady at Rs1,560 per tola and Rs1,337.44 per gram, while worldwide silver prices were reported at $21.14 per ounce.
Due to the worsening value of the rupee, which has continued to make record lows versus the dollar, gold has been on the increase in the local market for the most of the week.
The constant loss of foreign reserves, which has resulted in the rupee’s devaluation, has made it difficult to keep gold prices stable. Pakistan’s foreign currency reserves fell to $16.3 billion in the week ending May 6, the lowest level since December 2019.
The reserves of the government fell by $178 million to $16.376 billion. The central bank’s reserves fell by a further $190 million to $10.31 billion.