KARACHI: The rupee depreciated by 0.52 percent versus the US dollar on Thursday, causing gold prices in Pakistan to rise by Rs2,000 a tola.
Gold prices in the local bullion market jumped by Rs2,000 per tola to Rs124,000, according to the All Sindh Saraf Jewellers Association (ASSJA), while the price of 10 kilos gold increased by Rs1,715 to Rs106,310.
The precious metal had finished the previous day at Rs122,000 per tola and Rs104,595 per gram.
Concerns that the State Bank might boost its benchmark interest rates caused the rupee to lose roughly Rs7,100 per tola from November 12 to 17.
Gold, which is commonly used as an inflation hedge, has profited thus far by the pandemic’s low-interest rates.
Higher interest rates lower the attraction of bullion, as the opportunity cost of storing the non-interest-bearing metal rises.
Tomorrow, the State Bank of Pakistan (SBP) will declare its monetary policy rate for the next two months.
Meanwhile, the precious metal continued to fall on the international market, losing just $2 per ounce to close at $1,860 per ounce.
It’s worth noting that gold prices in Pakistan are roughly Rs4,000 lower than those in Dubai.
Furthermore, the domestic silver price remained constant today at Rs1,440 per tola and Rs1,234.56 per 10 gram.