Pakistan’s gold prices have dropped from their all-time highs.
Gold fell from an all-time high on Wednesday, mostly because the rupee has been trading around an all-time low for the past few days.
All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) said that the price of gold (24 carats) went down by Rs300 per tola and Rs257 per 10 grams to settle at Rs218,000 per tola and Rs186,900 per 10 grams.
The drop of the valuable metal was the same as the movement of the rupee, which went up by 1.81, or 0.63 percent, to 286.62 against the US dollar on the interbank market.
Gold was selling at all-time highs this week, as the value of the rupee fell and inflation stayed at an all-time high. People buy the yellow metal when the economy is bad because they think it will protect them from inflation. Because more people want it during Ramadan, its price generally goes up as well.
During the seven days that finished on April 6, sugar and chicken prices went up due to Ramadan and likely hoarding. This caused inflation to go up by 0.92 percent from the previous week and 44.4 percent from the previous year.
Investors are now paying more attention to the valuable commodity this week, as economic tensions continue to rise and the International Monetary Fund (IMF) reviews external financing pledges from friendly countries before releasing bailout funds.
The delay in bringing the program back has hurt the money market, which is making more people want to buy gold.
The association also said that the price of gold in Pakistan is “undercost” by Rs4,000 per tola compared to the Dubai market, which shows that the gold market in Pakistan is currently cheaper than the world market.
On the local market, silver prices stayed the same at Rs2,520 per tola and Rs2,160.5 per 10 grams, which are all-time highs.
On the foreign market, the price of an ounce of gold went up $8 to $2,009.