Tuesday saw the worst one-day decline in gold prices in Pakistan as the rupee marginally strengthened against the US dollar as investors closely followed the US Federal Reserve’s decision to raise interest rates and its outlook for policy.
The price of gold (24 carats) fell by Rs9,000 per tola and Rs7,716 per 10 grammes to settle at Rs201,500 and Rs172,754, respectively, according to data issued by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).
The jewellers’ organisation also claimed that local gold in Pakistan was “overpriced” by Rs2,500 per tola when compared to the bullion market in Dubai.
As a result of the developments surrounding the talks with the International Monetary Fund (IMF), the Pakistani rupee began to show signs of recovery today, rising by about 2 rupees to settle at 267.89.
However, investors were only buying gold bars, not jewellery, which had lowered goldsmiths’ profit margins and put the labour force at risk of losing jobs as jewellery manufacturers turned to other careers in the lack of work.
