KARACHI: On Saturday, the price of gold in Pakistan (24 carats) dropped by as much as 1% following gains made the day before due to an advancing rupee and hopes of recovering reserves weighing on bullion demand.
The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported that gold prices fell by Rs1,800 per tola and Rs1,543 per 10 grams to settle at Rs205,700 and Rs176,355. The precious commodity lost Rs2,600, or 1.25%, per tola during the short week ending on March 25. Gold price movements in Pakistan are influenced by the rupee-dollar parity as the country imports almost all its gold demand.
Silver prices in the domestic market, on the other hand, gained Rs30 per tola and Rs25.71 per 10 grams, settling at Rs2,250 per tola and Rs1,929 per 10 grams, respectively. In the international market, gold dipped in a volatile week, settling at $1,978 after a decrease of $19, as bank contagion fears bolstered both safe-haven demand and bets on a pause in Federal Reserve rate hikes. The APSGJA also mentioned that the price of gold is Rs16,000 per tola “undercost” in Pakistan, as compared to the Dubai market, indicating that the Pakistani gold market was currently cheaper than the global.