KARACHI: Gold price in Pakistan dropped by Rs1,200 per tola in Pakistan despite rupee depreciation — which hit an all-time low of Rs224.92 against the US dollar on Wednesday.
According to All Sindh Sarafa Jewellers Association (ASSJA), gold prices in the local bullion market dropped by Rs1,200 per tola to reach Rs144,000, while the price of 10 grams of gold decreased by Rs1,028 to reach Rs123,457.
A day earlier, the precious commodity closed at Rs145,200 per tola and Rs124,485 per 10 grams.
Analysts were surprised over a decline in the gold price as past practices suggest that people used to take aggressive positions in gold in inflationary days.
Speaking to Geo.tv, a gold dealer said that investing in gold is a safe bet against rupee depreciation or devaluation.
“People may also invest directly in the dollar to take a similar advantage, but some investors are more inclined towards the traditional shining asset,” he said.
He, however, said that Pakistan remains a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the commodity locally.
Accordingly, the gold price for local markets is determined keeping in view its prices in world markets, the rupee-dollar exchange rate and its demand and supply in local markets.
In the international market, bullion prices dropped by $9 per ounce to settle at $1,708.
Gold rates in Pakistan are around Rs2,000 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,580 per tola and Rs1,354.60 per 10 grams today.
