KARACHI: Gold prices dipped on Thursday in the local market, as the rupee strengthened against the dollar, putting downward pressure on the yellow metal.
In the local bullion market, gold prices decreased by Rs3,550 per tola and Rs3,043 per gram Wednesday, to Rs120,650 and Rs103,438 respectively, despite rising prices in overseas markets.
On Wednesday, the precious metal traded at Rs124,200 per tola and Rs106,481 per gram.
According to the All Sindh Saraf Jewellers Association, it rose $13 per ounce to about $1,802 on the international market (ASSJA).
The precious commodity is under double pressure owing to a huge increase in the local currency and global market uncertainties.
He had stated, “Locally, the price of the yellow metal is projected to flow with the value of the currency.”
The Pakistani rupee recovered in the interbank market, returning to Rs172.26 versus the US dollar after Saudi Arabia made a $3 billion deposit with the State Bank of Pakistan (SBP) to assist boost the country’s foreign reserves.
Due to a considerable devaluation of the rupee versus the US dollar, gold reached an all-time high of Rs132,000 per tola in Pakistan on Tuesday.
Since last week, gold has been attracting safe-haven investment because investors who used to pour money into foreign currencies, particularly the US dollar, to avoid the impact of inflation, have been buying gold because the government and central bank have tightened regulations on the open market purchase of foreign currencies.
The price of gold increased by Rs14,000 from October 18 and October 26.
It’s worth noting that gold prices in Pakistan are roughly Rs3,500 lower than those in Dubai.
On meanwhile, silver prices in the domestic market fell by Rs20 per tola and Rs17.15 per gram today, to Rs1,460 per tola and Rs1,251.71 per gram.