Gold hits historic high of Rs171,400/tola

• The prices of gold in the local market of Pakistan depend on the local unit’s movement.
• The local currency has remained under pressure in the interbank.
• Gold prices fell on Thursday after the US Federal Reserve struck.

KARACHI: The price of gold increased Rs500 to reach an all-time high of Rs171,400 on Thursday on the back of weakening rupee.

Gold 24kt gained Rs500/tola and Rs429/10 grammes to hit Rs171,400/tola and Rs146,948/10 grammes, respectively.

The prices of gold in the local market of Pakistan is dependent on the local unit’s movement against the dollar, which continues to deteriorate.

The local currency has remained under pressure in the interbank foreign exchange market owing to reduced inflows and narrowing foreign exchange reserves of the country.

The foreign exchange reserves held by the State Bank of Pakistan fell $134 million to reach $7.82 billion during the week ended November 18, compared with $7.95 billion on November 11.

According to the central bank, the decrease in reserves came due to external debt repayment.

The overall liquid foreign currency reserves held by the country, including the net reserves held by banks other than the SBP, stood at $13.64 billion, while the net reserves held by banks amounted to $5.81 billion.

In the international market, gold prices fell on Thursday after the US Federal Reserve struck a more hawkish chord than markets were expecting, with the outlook for the yellow metal remaining uncertain on the prospect of higher US interest rates.

Still, bullion prices marked a strong rally this week, clearing the key $1,800 resistance level after data showed US inflation eased further in November.

Spot gold fell 0.4 per cent to $1,800.79/ounce, while gold futures fell 0.4 per cent to $1,811.35/ounce.

The price of silver remained unchanged at Rs1,990/tola and Rs1,706.10/10 grammes.

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