Tuesday Sep 27 2022

Price of gold falls post-rupee appreciation

A representational image of gold bars. — Reuters/File
A representational image of gold bars. — Reuters/File

  • Gold price settles at Rs141,850 per tola.
  • Rates plunge in line with the dollar’s value (in Pakistan).
  • Silver prices in domestic market remain unchanged.

KARACHI: Battered by a drop in the dollar rate, gold decreased Rs1,450 per tola (11.66 grams) to Rs141,850 in Pakistan as the precious metal also lost around $3 in value in the international market on Tuesday.

Gold plunged in line with the dollar’s value in Pakistan.

Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of the precious metal plunged by Rs1,450 per tola and Rs1,243 per 10 grams to settle at Rs141,850 per tola and Rs121,614 per 10 grams, respectively. 

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 Rs4 in the open market, the association has adjusted down the bullion price accordingly.

In the international market, the price of the yellow metal fell by $3 per ounce settling at $1,637 amid volatility right now as markets increasingly price at much higher rates.

Gold rates in Pakistan are around Rs2,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,570 per tola and Rs1,346.02 per 10 grams.