As the excitement over the International Monetary Fund (IMF) agreement faded, investors turned their attention to Finance Minister Ishaq Dar’s talks with friendly nations for loans to avert a looming economic disaster in Pakistan, and the gold price fell below Rs205,000 on Monday, extending its losses for a second trading day.
The price of gold (24 carats) decreased by Rs 1,100 per tola and Rs 944 per 10 grammes to settle at Rs 204,600 and Rs 175,411 respectively, according to information provided by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).
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.
In addition, the group said that the price of gold in Pakistan is Rs 10,000 per tola “undercost” when compared to the Dubai market, demonstrating that the Pakistani gold market is now more affordable than the international one.
Silver’s price on the domestic market remained stable at Rs. 2,250 for a tola and Rs. 1,929 for a gramme during this time.
A rise in stocks reduced gold’s appeal as a safe haven on the international market, and investors assessed the actions taken by the government to allay concerns about a potential crisis in the world financial system. After falling by $28, the price per ounce was finalised at $1,950.
The psychological $2,000 level was kissed by bears last week, and they took advantage of this reluctance to strike. A stable dollar and the Fed’s ambiguous monetary policy signals have also tempered demand for the precious metal, according to Lukman Otunuga, senior research analyst at FXTM.