Gold rate in Pakistan today: Bullion price nosedives amid rupee-dollar fluctuation

Price of silver per tola plunged by Rs20 to settle at Rs2,580
An undated image of gold jewellery. — Freepik

An undated image of gold jewellery. — Freepik

Gold prices in Pakistan on Thursday underwent a massive nosedive in the wake of rupee-dollar fluctuation and yellow metal's decreasing cost in the international market.

According to the data disclosed by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the per tola gold price in Pakistan dropped by Rs4,200 to settle at Rs222,800, whereas the price of per 10-gram noted a decline of Rs3,600 to settle at Rs195,645.

Similarly, the price of gold in the international market noted a markdown of $40 per ounce to settle at $2,185. Data shared by the association also showed that the price of silver per tola and per 10 grams plunged by Rs20 and Rs17.15 to settle at Rs2,580 and Rs2,211.93, respectively. 

It should be noted that gold price in Pakistan is announced by the association, which determines gold prices in Pakistan for local markets six days a week from Monday to Saturday.

Pakistan is a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the precious metal locally.

Accordingly, the gold rate in Pakistan is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets. The latest price for local markets was determined to keep in view the prices at which trade took place among buyers and sellers.

Gold price in Pakistan has been volatile in Pakistan recently amid continued political and economic uncertainty and high inflation. People prefer to buy this precious commodity in such times as a safe investment and a hedge.

Local dealers believe that the return of inflationary days in Pakistan and worldwide has once again invited investors’ attention towards the yellow metal as safer commodities become attractive at such a time.

On the physical side, demand for gold in Pakistan recently picked up pace as some consumers bought into a retreat in domestic prices as the wedding season will kick off immediately after Ramadan.