As foreign rates fall, gold loses its shine.
This week, gold prices in Pakistan have been close to an all-time high. On Wednesday, they went down, which was in line with what was happening on the world market.
According to information from the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24k gold fell by Rs550 per tola and Rs471 per 10 grams to Rs216,850 and Rs185,914, respectively.
Last week, the price of the yellow metal hit a new high of Rs218,600 per tola. Then, on April 15, its price on the foreign market went down, and it fell to Rs216,000 per tola. As the new week started, it was again going up.
On the foreign market, however, the price of gold fell by $31 and now stands at $1,974 per ounce. So, the rate on the local market went down as well.
The fall was also caused by the stability of the rupee’s value, which stayed at Rs283.89 per US dollar at the end of the day on the exchange market.
On April 11, the rupee hit an all-time low of Rs288.43 per US dollar on the exchange market. Even though it has gotten better since then, the US dollar is still worth more than Rs280.
The economic problem in the country is likely to blame for the rise in demand for the precious metal and the rise in its price. People prefer to buy gold when the economy is bad because it is thought to be a hedge against inflation and the value of the local money going down.
Also, a study by Topline Securities says that gold was the best-performing asset in 2022.
According to information given by the association, the price of silver on the local market stayed the same at Rs2,530 per tola and Rs2,170 per 10 grams.