Karachi : Gold, the coveted precious metal, faced a decline in value for the second consecutive day on Tuesday in Pakistan, despite an increase in the international rate.
According to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold witnessed a decrease of Rs1,700 per tola and Rs1,458 per 10 grams, reaching Rs232,800 and Rs199,588, respectively.
Last week, the gold rate suffered a cumulative loss of Rs1,100 per tola, and on the opening day of this week, it fell further by Rs1,700. These fluctuations have left investors and market analysts concerned.
Meanwhile, the international price of gold saw an increase of $11, settling at $1,956 per ounce. The safe-haven bullion’s value has exhibited volatility in the international market recently. However, it experienced a rebound on Tuesday, recovering from its lowest level in over two months. This resurgence came as the value of the US dollar declined from a high and investors remained anxious about ongoing negotiations on the US debt ceiling.
If the debt ceiling, which is presently capped at $31.4 trillion, is not raised within the next few days, it could trigger the first-ever US default. Investors, taking heed of this potential risk, have also expressed concern about a possible interest rate hike, which could adversely impact the value of gold.
In the Pakistani market, the gold rate has been marked by volatility in recent times due to persistent political and economic uncertainty, high inflation, and currency depreciation. During such periods, individuals often turn to gold as a safe investment and a hedge against instability.
On the currency front, the Pakistani rupee managed to make modest gains. It strengthened by Re0.07 or 0.02% against the US dollar in the interbank market on Tuesday, closing at Rs285.35, according to data from the State Bank of Pakistan.
Data shared by the APSGJA indicates that the rate of silver remained unchanged at Rs2,850 per tola and Rs2,443.41 per 20 grams, respectively, providing a stable alternative for those who seek investment opportunities beyond gold.
The volatility in gold’s value both internationally and within Pakistan continues to attract attention and raises concerns among investors as they closely monitor market developments and external factors influencing the precious metal’s worth.