KARACHI: Gold lost its luster on Wednesday, dropping over Rs7,800 per tola to Rs124,200 in Pakistan, in line with global markets.
Bullion prices fell by Rs7,800 per tola and Rs6,687 per gram in the local market, settling at Rs124,200 per tola and Rs106,481 per gram.
According to the All Sindh Saraf Jewellers Association, it dropped $15 per ounce to about $1,789 on the worldwide market (ASSJA). That the precious commodity was under double pressure today because to a huge increase in the local currency and worldwide market uncertainties.
After Saudi Arabia stated that it was depositing $3 billion in the State Bank of Pakistan (SBP) to help bolster its foreign reserves, the Pakistani rupee rallied significantly on Wednesday, returning to Rs172.78 versus the US dollar in the interbank market.
Due to a considerable devaluation of the rupee versus the US dollar, gold reached an all-time high of Rs132,000 per tola in Pakistan on Tuesday.
Since last week, investors who used to pump money into other currencies, mainly the US dollar, to avoid the impact of inflation, have been buying gold since the government and central bank have tightened laws concerning the purchase of gold.
The price of gold increased by Rs14,000 from October 18 and October 26.
It’s worth noting that gold prices in Pakistan are roughly Rs2,000 lower than those in Dubai. On meanwhile, silver prices in the domestic market fell by Rs40 per tola and Rs34.29 per gram today, to Rs1,480 per tola and Rs1,268.86 per gram.