- Despite the rupee’s collapse, the price of gold in Pakistan fell by Rs 1,200 per tola.
- Bullion prices fell $9 per ounce to close at $ 1,708 on the global market.
- In Pakistan, gold is priced at about Rs 2,000 less than the Dubai market.
Despite the rupee’s collapse, which on Wednesday reached an all-time low of Rs224.92 versus the US dollar, the price of gold in Pakistan fell by Rs 1,200 per tola.
The price of gold in the local bullion market reduced by Rs 1,200 per tola to Rs 144,000 and by Rs 1,028 for 10 kilos to Rs 123,457, according to the All Sindh Sarafa Jewellers Association (ASSJA).
The valuable commodity had a previous day’s closing price of Rs145,200 per tola and Rs124,485 per 10 kilos.
Analysts were taken aback by a decrease in the price of gold because historical evidence suggests that during periods of inflation, people tended to hold aggressive positions in gold.
A gold dealer told Geo.tv that purchasing gold is a secure bet against currency depreciation or devaluation.
Some investors are more inclined towards the conventional shining asset, but people may invest directly in the dollar to obtain a same advantage, he said.
But according to him, Pakistan is still only a minor portion of the world gold market. As it does not manufacture the commodity locally, it imports it to satisfy demand.
As a result, the price of gold in local markets is established by taking into account its costs on international markets, the rupee-dollar exchange rate, as well as the supply and demand for it in those markets.
Bullion prices fell $9 per ounce to close at $1,708 on the global market.
In Pakistan, gold is priced at about Rs 2,000 less than it would be in the Dubai market.
In the meantime, today’s domestic market silver prices stayed the same at Rs. 1,580 per tola and Rs. 1,354.60 per 10 grams.
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