The advance of the rupee and expectations of regaining reserves caused gold prices in Pakistan to give up gains made the previous day and drop by as much as 1% on Saturday.
The price of 24 carat gold decreased by Rs 1,800 per tola and Rs 1,543 per 10 grammes, according to data provided by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), to settle at Rs 205,700 and Rs 176,355, respectively.
The precious commodity saw cumulative losses of Rs2,600, or 1.25%, per tola during the brief week that ended on March 25. This was due to the fact that the precious commodity experienced losses in four of the five sessions while the market was closed on March 23.
The metal price increased by Rs5,600 per tola the previous day as local markets reopened following a day off due to a public holiday in observance of Pakistan Day.
Due to the fact that the nation imports the majority of the gold it needs and that dealers base their prices on the worldwide price of gold, the price of gold fluctuates in accordance with the rupee-dollar exchange rate.
The metal is imported by jewelers, who first exchange its value into US dollars and UAE dirhams.
The group also pointed out that the cost of gold in Pakistan is Rs. 16,000 per tola “undercost” when compared to the Dubai market, showing that the Pakistani gold market is now more reasonable than the global one.
Gold prices fell in the international market during a turbulent week that saw bullion prices rise beyond the crucial $2,000 level as concerns about bank contagion boosted demand for safe haven assets and expectations on a slowdown in Federal Reserve rate hikes.
The price per ounce dropped by $19 to close at $1,978.
The domestic market saw an increase in silver prices of Rs30 per tola and Rs25.71 per 10 grams, respectively, to Rs2,250 per tola and Rs1,929 per 10 grammes.