Gold prices in Pakistan have experienced a decline for the second consecutive day, despite an increase in the international rate. According to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) decreased by Rs1,700 per tola and Rs1,458 per 10 grams, reaching Rs232,800 and Rs199,588, respectively.
Last week, the gold rate witnessed a cumulative loss of Rs1,100 per tola, followed by an additional decrease of Rs1,700 on the opening day of this week. In contrast, the international price of gold rose by $11, settling at $1,956 per ounce.
The value of gold in the international market has been experiencing volatility recently. However, it rebounded from its lowest level in over two months as the US dollar weakened and investors expressed concerns about negotiations on the US debt ceiling. Failure to raise the debt ceiling, currently capped at $31.4 trillion, within the next few days, could trigger the first-ever US default. Additionally, investors remain cautious about the possibility of an interest rate hike, which could have a negative impact on the value of gold.
In Pakistan, the gold rate has also been volatile due to ongoing political and economic uncertainty, high inflation, and currency depreciation. During such times, people often turn to gold as a safe investment and a hedge against these uncertainties. The recent fluctuations in gold prices reflect the prevailing market conditions and investor sentiment.
Meanwhile, the Pakistani rupee gained Re0.07 or 0.02% against the US dollar in the interbank market, closing at Rs285.35, as reported by the State Bank of Pakistan. This exchange rate movement may have contributed to the fluctuations in gold prices in the country.
On the other hand, the price of silver remained unchanged at Rs2,850 per tola and Rs2,443.41 per 20 grams, according to data shared by the jeweler’s body. While gold prices have experienced a decline, the stability in silver prices indicates a different trend in the precious metals market.
As the market continues to respond to various factors, including global economic conditions and investor sentiment, gold prices are likely to remain volatile. The fluctuations present both challenges and opportunities for investors and individuals interested in the precious metals market. Staying informed about market trends and carefully considering various factors can help individuals make informed decisions regarding their investments.