KARACHI: In line with the price movement in the international market, the price of gold in the local market declined by nearly 1% despite the depreciation of the Pakistani rupee against the US dollar.
Data released by All Sindh Sarafa Association, gold price edged lower by Rs1,400 per tola and Rs1,200 per 10 grams to settle at Rs145,600 and Rs124 on Monday.
The precious commodity had gained Rs4,400 per tola during the week ended August 27, 2022.
The association determines local prices based on rupee-dollar parity and international rates. According to market practice, local prices of gold usually go down on the rupee’s appreciation against the US dollar and rising prices of commodities in the international market.
Read more: Pak-Iran set to resume talks over IP Gas pipeline project
However, the analysts and the market players are surprised about the declining gold prices despite the depreciation of the local currency.
In the international market, the price of the yellow metal dropped by $10 per ounce to settle at $1,728 to as US Federal Reserve Chair Jerome Powell acknowledged that a quick undo of the US central bank’s rate tightening was far from over, boosting the dollar.
It should be noted that the gold price stands below cost and is cheaper by Rs7,000 per tola compared to Dubai.
