The gold surge slowed down on Monday in line with market speculation that the yellow metal was about to see a significant correction after building up a winning momentum by taking full advantage of a weak rupee and a weaker dollar.
In the previous three trading sessions, the valuable commodity increased by Rs7,300 per tola (Thursday-Saturday).
According to information provided by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold fell by Rs 2,800 per tola and Rs 2,401 per 10 kilos, respectively, to settle at Rs 184,500 and Rs 158,179.
Last week, gold prices remained volatile during the week, with the precious commodity undergoing correction during the first three sessions; however, it regained its shine. The price rose by Rs2,000 during the volatile week that ended on January 14.
According to the group, the price of gold in Pakistan has been “overcost” by Rs2,000 per tola when compared to pricing in Dubai. This indicates that the price of gold in Pakistan is currently higher than it is on the global market.
It should be emphasized that investors in gold now make up the majority of the buyers in the local market. In the past, people kept their money in US dollars to protect them from the effects of the rupee’s devaluation during a period of high inflation.
According to goldsmiths, after the dollar’s shortage on the open market, investors began to shift their investments to the bullion market. Compared to Rs228 in the interbank market, illegal sellers were selling the dollar for Rs280-290 in the black market.
In the meantime, local silver prices dropped by Rs 20 per tola and Rs 17.15 per 10 grams, respectively, to settle at Rs 2,080 and Rs 1,800.41.
As the dollar strengthened on Monday, the price of gold fell on the world market, but bullion remained well above $1,900 per ounce in hopes that the US Federal Reserve will be less aggressive in raising interest rates. After dropping by $5, the price finally stabilized at Rs 1,915 per ounce.
