Gold price in Pakistan declines despite rupee depreciation

Karachi: The price of gold in Pakistan experienced a second consecutive decline on Monday, despite a depreciation of the rupee against the dollar in both the interbank and open market.

According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold decreased by Rs1,000 per tola and Rs857 per 10 grams. This resulted in a settlement price of Rs230,400 per tola and Rs197,531 per 10 grams.

Simultaneously, the international market witnessed a decline of $8 in the price of gold, with it settling at $1,940 per ounce.

Gold prices in domestic markets fluctuated throughout the previous week, experiencing a decrease of Rs1,600 on Saturday, June 3. Overall, the price of gold has decreased by Rs2,600 over the last two sessions.

The recent volatility in Pakistan's gold rate can be attributed to ongoing political and economic uncertainty, high inflation, and currency depreciation. During such times, individuals often consider purchasing gold as a safe investment and hedge against economic instability.

Data provided by the association indicated that the price of silver remained unchanged at Rs2,750 per tola and Rs2,357.68 per 10 grams.

At the beginning of the week, the local currency depreciated by Rs0.51 or 0.18% against the US dollar, closing at Rs286.19.