Gold rates in Pakistan were largely stable on Friday, but have cumulatively witnessed a significant decline in the last month as rupee’s unprecedented recovery against the US dollar, coupled with the caretaker government’s action against illegal activities in the bullion and currency markets, put the yellow metal on track for a fall of Rs18,000 per tola in the previous 30 days.
On Friday, gold per tola price was quoted at Rs197,100, shedding only Rs100 during the day despite an up to $7 increase in the international rate, according to data shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).
Thursday’s rate was almost Rs18,000 lower when compared with September 12 when the precious metal was priced at Rs215,000 per tola.
The ease in gold rates in Pakistan is in line with the rupee’s consistent appreciation against the dollar.
In the last 27 successive sessions, the local currency has gained over 10% since it hit a record low of 307.1 in inter-bank market on September 5.
Meanwhile, ongoing action by the caretaker government against illegal economic activities such as smuggling, hoarding, and price speculation also contributed in a significant decline in gold prices.
The interim government also constituted a task force consisting of law enforcement and intelligence agencies for “decisive action against gold mafia” and smuggling of precious metals.
It is pertinent to mentioned that the traders had refrained from issuing gold rates as bigwigs continued to discuss ways to keep the market “free from speculation” following the crackdown.
The bullion market reopened on Tuesday this week after a month-long hiatus with the price of 24-carat gold witnessing a steep fall of Rs15,500 per tola.
On Thursday, the 10-gram gold was priced at Rs168,981.
In the international market, the gold rate per ounce was recorded at $1,892, up by $7 from the previous close. The international rates are also currently lower as compared to the previous month. On September 12, the gold price had stood at $1,911 per ounce.
Meanwhile, silver rates remained unchanged at Rs2,500 per tola on Friday.