Gold loses traction, price drops by Rs50 per tola

• Gold price falls around Rs50 per tola to settle at Rs128,800.
• The decline comes after rupee appreciated by 0.19%.
• Silver prices in the domestic market remain unchanged.

KARACHI: The price of gold in Pakistan receded on Friday as investors sought cover from geopolitical uncertainty, inflation, and its impact.

The precious commodity fell by around Rs50 per tola and Rs43 per 10 grams to settle at Rs128,800 per tola and Rs110,425 per 10 grams, respectively.

The decline was registered after the Pakistani currency appreciated by 0.19% against the US dollar in the interbank market.

Meanwhile, the yellow metal stayed above the key $1,940-per-ounce level in the international market with an increase of $12. The price settled at $1,947.

Speaking to Geo.tv. local dealers said: "We do see some seasonal demand but overall, lack of purchasing power has disrupted the local demand for gold."

Gold rates in Pakistan are around Rs4,000 below 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.