Gold declines to Rs135,300/tola

KARACHI: The price of gold recorded a decline of Rs700 to reach Rs135,300/tola on Friday as the international gold prices fell to 1,818/ounce.

Gold 24kt declined Rs700/tola and Rs600/10grammes in the local market to hit Rs135,300/tola and Rs115,998/10grammes, respectively.

The yellow metal recorded the all-time high of Rs136,000/tola the previous day in the local market, as a 22-month low of Pakistan’s forex reserves, soaring trade deficit and uncertainty regarding the International Monetary Fund (IMF) loan programme kept the local unit under pressure.

Silver remained unchanged at Rs1,560/tola and Rs1,337.44/10grammes, respectively, while the international Silver prices were recorded at $20.84 per ounce on Friday.

Gold in the previous three sessions extended gains in the local market due to a weak rupee which continued making historic lows against the greenback.

The rupee witnessed the seventh consecutive decline on Friday but the declining international gold prices have helped in arresting the price of gold in the local market.

Although the gold prices have witnessed a decline, the continuous depletion in the forex reserves resulting in the weakening of rupee, remains a challenge to curb the prices of gold.

Pakistan’s foreign exchange reserves dropped to their lowest level since December 2019 at $16.3 billion in the week ended May 6.

The country’s reserves declined by $178 million to $16.376 billion. The reserves held by the central bank decreased another $190 million to $10.31 billion.