KARACHI: The price of gold in Pakistan have decreased on Monday as the Pakistani rupee braced strength against the US dollar due to the International Monetary Fund (IMF) programme.
Gold price in the local market decreased by Rs400 per tola and Rs342 per 10 grams to settle down at Rs123,400 per tola and Rs105,796 per 10 grams.
On Saturday, the yellow metal closed at Rs123,800 per tola and Rs106,138 per 10 grams.
Previously, the valuable product lost Rs4,300 per tola or 3.35%.
However, the international market gold prices reached a two-week low, distressed by a steadier dollar and forecasts that the US’s Federal Reserve might quicken the stride of policy constriction as inflation increases.
“Gold has support from a surge in inflation…but the market is slightly worried about how the Fed will deal with it and if they will step up their efforts, and that could be a short-term drag on gold,” said Saxo Bank analyst Ole Hansen.
A break below $1,830 could open gold up to the risk of a return to $1,800, Hansen added.
It is pertinent to mention that gold rates in Pakistan are around Rs3,000 below cost compared to the gold rate in the Dubai market.
On the contrary, the price of silver in the domestic market recorded an increase of Rs20 per tola and Rs17.15 per 10-grams to settle at Rs1,460 per tola and Rs1,251.71 per 10 grams today.