[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]On Monday, the price of gold fell below Rs200,000 a tola as investors turned away from the yellow metal as the Pakistani rupee strengthened against the dollar for a third straight session.
According to data from the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) decreased by Rs2,000 per tola and Rs1,715 per 10 kilos to settle at Rs198,000 and Rs169,753, respectively.
After the rupee strengthened by 0.19% against the US dollar to settle at 277.92 in the interbank market, the price of gold sharply declined.
The price of yellow metal decreased by Rs 8,500 per tola in three trading days, which was more than the cumulative increase of Rs 5,900, or 3.03%, per tola for the week ending March 4.
On January 30, 2023, the price of the precious metal reached an all-time high of 210,500 a tola. However, once the rupee recovered on expectations that the $6.5 billion International Monetary Fund (IMF) rescue programme would resume, the price of gold began to decline.
It should be noted that Pakistan imports practically all of the gold it needs, and local traders fix their prices in accordance with worldwide market rates. The metal is imported by jewellers, who first exchange its value into US dollars and UAE dirhams.
In the meantime, the cost of silver in the domestic market remained constant at Rs. 2,140 for a tola and Rs. 1,834.70 for a gramme.
Also Read: Interbank rupee declines by almost Rs19 against Us dollar due to IMF delays.
On the global market, gold prices dropped from a recent high of two and a half weeks as investors awaited US Federal Reserve Chair Jerome Powell’s testimony this week for cues on potential rate increases.
The price of gold decreased just modestly, by $7, to settle at $1,849.
The February employment data is due on Friday, and after Powell’s appearance before Congress on Tuesday and Wednesday, all eyes will be on that.
Gold is currently in a waiting-and-seeing mindset, according to UBS analyst Giovanni Staunovo. It’s unlikely that Powell will alter his course and continue to emphasise the necessity of raising interest rates in order to manage inflation.
Although gold is regarded as an inflation hedge, demand for zero-yield metal tends to decline when interest rates rise.[/vc_column_text][/vc_column][/vc_row]
