Devaluation of the rupee
Despite the devaluation of the rupee versus the dollar on both the open market and the inter bank market, gold prices in Pakistan saw only a slight drop on Monday. This was the case even though the interbank market was open. According to a study by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold that is 24 carat has dropped by Rs1,000 per tola and Rs857 per 10 grammes. The new prices per tola and per 10 grammes are respectively Rs230,400 and Rs197,531, respectively. The price of gold fell by $8 per ounce on the international market, and it eventually settled at $1,940.
Price of gold
The price of gold on the domestic market was volatile over the previous week, and on Saturday alone, the price fell by a total of Rs 1,600. A total loss of Rs2,600 was incurred by the price of gold throughout the course of the previous two trading sessions. The current political and economic unpredictability in the country, as well as high inflation rates and currency devaluation, can all be related to the erratic behaviour of gold prices. When times are uncertain, individuals frequently look to gold as a secure investment and a hedge against the risks that are associated with the economy.
Individuals in Pakistan continue to priorities the safety of their money and investment portfolios, which has contributed to the country’s robust demand for gold. Gold is often regarded as a trustworthy value storage option and a method for diversifying the risks associated with investment portfolios. Many people believe that gold is an asset that may give stability and protect them from the effects of inflationary pressures. This is because of the continual difficulties that are occurring within the economy as well as the depreciation of the local currency.
the price of silver
According to the data that was provided by the APSGJA, the price of silver did not alter in comparison to the price of gold. The price of silver remained unchanged from its previous levels, coming in at Rs2,750 per tola and Rs2,357.68 per 10 grammes.The decline in the value of the local currency relative to the dollar was another factor that contributed to the upward pressure on gold prices. At the beginning of the week, the value of the rupee decreased by Rs0.51, or 0.18%, versus the United States dollar, and it finished at Rs286.19. Gold’s price, along with those of other imported goods like coffee and oil, can be significantly influenced by shifts in currency markets.
When compared to the broader price shifts that have been seen on the international market, the recent drop that has been seen in gold prices in Pakistan is quite minor overall. Gold prices tend to be very volatile due to a number of variables, including domestic economic problems and currency depreciation, as well as the local market’s reaction to trends in global commodity prices. Gold is likely to continue to be a highly sought-after asset in Pakistan, as investors and individuals there continue to keep a close eye on the economic climate and look for stability in their financial portfolios.