The price of gold has settled at Rs145,500 per tola.
Since the dollar has fallen in the open market, the association has adjusted the bullion price downward.
Domestic silver prices remained unchanged.
Despite rising international prices, gold prices in Pakistan fell as the rupee strengthened, discouraging investors from investing.
According to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the gold price fell by Rs400 per tola and Rs343 per 10 gramme to settle at Rs145,500 per tola and Rs124,743 per 10 gramme.
Gold’s trend is mostly determined by the rupee-dollar exchange rate, and international gold prices have been a bearish catalyst for bullion.
Pakistan imports almost all of its gold, and traders set rates in the country based on the international price. Jewellers buy the metal in US dollars and UAE dirhams before converting it to rupees.
Since the rupee has fallen by more than Rs5 in the open market, the association has reduced the bullion price accordingly.
In the international market, the yellow metal rose $13 per ounce to settle at $1,664 due to a weaker dollar, but non-yielding bullion was on track for its biggest quarterly decline since March last year due to central banks’ continued aggressive monetary policy stance.
When compared to the Dubai market, gold prices in Pakistan are around Rs2,000 lower.
Meanwhile, domestic silver prices remained unchanged at Rs1,560 per tola and Rs1,337.44 per 10 grammes.
With gold under pressure, silver should struggle to outperform, but a clear positive turn in gold poses significant risks for silver.
