Tuesday, February 07, 2023
Gold prices in Pakistan witnessed a steep decline on Tuesday amid ongoing economic uncertainty in the country and continuous fluctuation in the local currency.
According to All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) decreased by Rs4,300 per tola and Rs3,686 per 10 grams to settle at Rs200,000 per tola and Rs171,468 per 10 grams, respectively.
This is the third straight decline in the precious commodity's price — which fell Rs200 per tola on Monday and Rs4,000 per tola on Friday. The yellow metal market was mostly bullish last week.
However, as Pakistan imports gold, the precious commodity might get dearer as the State Bank of Pakistan-held reserves stand at a record low of $3,086.2 million, enough to cover imports of less than one month.
Investors were, however, purchasing only gold bars, not jewellery, which had not only reduced goldsmiths' profit margins but the labour force was also at the stake of losing jobs, as jewellery makers were moving towards other professions in absence of work.
In the international market, gold rose for a second consecutive session helped by a softer dollar after recent sharp losses, while traders awaited more economic data to gauge its likely influence on US interest rates.
Spot gold was up 0.4% to $1,875.36 per ounce by 0940 GMT, after hitting its lowest level since January 6 on Monday.
Meanwhile, silver prices in the domestic market decreased Rs20 per tola and Rs17.14 per 10 grams to settle at Rs2,230 and Rs1,911, respectively.
— Additional input from Reuters