As the rupee marginally strengthened against the US dollar and investors closely followed the US Federal Reserve’s interest rate rise decision and policy outlook, the price of gold in Pakistan saw its worst one-day decline.
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’ association also claimed that local gold in Pakistan was “overcost” by Rs2,500 per tola when compared to the bullion market in Dubai.
The price of gold has fallen as demand has decreased as investors appear to have abandoned the safe-haven commodity in favour of the dollar, which is now freely available on the open market following the lifting of the dollar cap.
As a result of the events surrounding the negotiations with the International Monetary Fund (IMF), the Pakistani rupee began to show signs of recovery today, rising by about Rs2 to settle at Rs267.89.
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.
