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Gold Glitters as Rupee Loses Shine Amid IMF Deal Delay

All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) says  the price of 24-carat gold rose by Rs2,300 per tola and Rs1,973 per 10 grams, settling at Rs207,900 and Rs178,241.

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Gold Glitters as Rupee Loses Shine Amid IMF Deal Delay
GNN Media: Representational Photo

Karachi: The gold prices on Wednesday increased once again due to a delay in the International Monetary Fund's (IMF) revival program, which caused the rupee to weaken and led to an increase in physical demand from bullion consumers.

According to data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold rose by Rs2,300 per tola and Rs1,973 per 10 grams, settling at Rs207,900 and Rs178,241.

The IMF has requested that external financing commitments be fulfilled by friendly nations before releasing bailout funds. However, the delay has negatively impacted investor sentiment in the currency market, leading to increased demand for gold.

Since Pakistan meets almost all of its gold demand through imports, the price of gold is closely tied to the rupee-dollar exchange rate, with traders using the international gold price to set rates in the country. The metal is imported by jewellers against the US dollar and UAE dirham before being converted to the local currency.

In addition to the IMF delay, seasonal demand also contributed to the rise in gold prices in the local market. In two sessions, the precious commodity gained Rs3,300 per tola (Tuesday-Wednesday).

The APSGJA also stated that the price of gold in Pakistan is currently Rs9,000 per tola cheaper than the Dubai market, indicating that the Pakistani gold market is currently less expensive than the global market.

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