- The local price has come down by Rs 100 per tola and Rs 85 per 10 grams.
- Global price declines due to strong dollar, Treasury bonds.
- The association says that the price of local gold has increased by Rs 4,000 per tola.
Despite the widening deficit in the international market, the price of gold in Pakistan witnessed an extraordinary decline on Tuesday.
According to the All Pakistan Sarafa Gems and Jewelers Association (APSGJA), the price of gold (24 carat) per tola fell by Rs 100 and Rs 85 per 10 grams to close at Rs 237,200 and Rs 203,361 respectively.
Meanwhile, international rates fell $13 to $1,959 an ounce on a stronger U.S. dollar and Treasury bonds, helped by an expected interest rate hike by the Federal Reserve.
Investors also waited to see whether U.S. lawmakers could reach an agreement on raising the federal debt ceiling, without which the country would trigger its first default.
The domestic gold market has been volatile recently due to a number of factors – economic and political crisis, high inflation, and currency devaluation. People prefer to buy the yellow metal as a safe investment and as a hedge.
The jewellers’ body also said local gold in Pakistan is Rs 4,000 per tola more expensive than the Dubai bullion market. This means that currently Pakistani gold is more expensive than the global market.
Data shared by the association showed that silver prices remained steady at Rs 2,900 per tola and Rs 2,486.28 per 10 grams respectively.