Gold declines Rs1,000/tola

KARACHI: The prices of gold declined Rs1,000 in the local market to reach Rs142,000/tola on Thursday as the rupee made marginal gains against the dollar besides a decline in the international gold prices.

Gold 24kt gained Rs1,000/tola and Rs858/10 grammes to hit Rs142,000/tola and Rs121,742/10 grammes, respectively.

The prices of yellow metal recorded a decline amid appreciation in the local currency as the investors expected a hike in the key policy rate in the upcoming monetary policy statement (MPS) scheduled for today.

The analysts expect the State Bank of Pakistan (SBP) to hike the interest rate by 100bps to 150 bps, in order to tackle record inflation and a move to curb demand to provide relief to the local currency.

Pakistan is also awaiting a successful completion of the negotiation with the International Monetary Fund (IMF) for the disbursement of around $2 billion which is likely to play a vital role in providing a boost to foreign exchange reserves of the country.

The foreign currency reserves held by the State Bank of Pakistan (SBP) were recorded at $10.30 billion during the week ended on June 24, up $2.07 billion compared with $8.23 on June 17.

Likewise, the overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $16.19 billion while the net reserves held by banks amounted to $5.88 billion.

Besides, the international gold prices have fallen over $300 since March after the US Federal Reserve raised interest rates to rein in soaring inflation, increasing the opportunity cost of holding non-yielding bullion.

The price of gold in the international market witnessed a decline of $19 per ounce to $1,744/ounce.

The price of silver remained unchanged at Rs1,520/tola and Rs1,303.15/10 grammes, respectively, while the international silver prices were recorded at $19.46/ounce on Thursday.