Gold rate in Pakistan continued to register losses for the fourth consecutive session on Tuesday as the rupee maintained its uptrend against the US dollar on hopes of external funding expected within the next few days.
According to All-Pakistan Sarafa Gems and Jewelers Association (APSGJA), the price of gold (24 carats) fell by Rs700 per tola and Rs600 per 10 grams to settle at Rs197,300 and Rs169,153, respectively.
The price of gold is declining due to the strengthening of the rupee which settled at 277.87 against the US dollar in the interbank market today after a meager increase of 0.02% compared to Monday’s close of 277.92.
The price of yellow metal fell Rs9,200 per tola in four trading sessions which was more than the amount it cumulatively gained Rs5,900, or 3.03% per tola during the week ended March 4,
The precious commodity scaled to an all-time high of 210,500 per tola on January 30, 2023; however, the gold price started receding after the rupee recovered on hopes of revival of the $6.5 billion International Monetary Fund (IMF) bailout programme.
It should be noted that Pakistan meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country. Jewelers import the metal against the US dollar and UAE dirham before converting its price into rupees.
Meanwhile, silver prices in the domestic market remained unchanged at Rs2,140 per tola and Rs1,834.70 per 10 grams, respectively.
In the international market, gold prices eased as investors awaited Federal Reserve Chair Jerome Powell’s testimony later in the day for clues on the future path of US interest rate hikes. The price per ounce of gold settled at $1,842 after a decline of $7.
Prices have eased from a more than two-week peak of $1,858.19 hit on Monday but remained hemmed in a narrow range.
Gold’s quest to extend gains is set to be heavily influenced this week by potential policy clues from Powell’s testimonies and the incoming US payrolls report, Han Tan, chief market analyst at Exinity, told a foreign news agency.