When the rupee strengthened against the dollar on Wednesday, the price of gold in Pakistan drops for the third straight session, causing investors to change their attention.
According to data issued by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) fell by Rs 2,300 per tola and Rs 1,971 per 10 kilos to settle at Rs 201,900 and Rs 173,097, respectively.
Because Pakistan imports practically all of its gold needs and dealers base local prices on the worldwide price of gold, the price of gold fell by the value of the dollar (in Pakistan).
The metal is imported by jewellers, who first exchange its value into US dollars and UAE dirhams.
In addition, the group noted that the price of gold in Pakistan is Rs 14,000 per tola “undercost” when compared to the Dubai market, demonstrating that the Pakistani gold market is now more affordable than the international one.
On Wednesday, gold traded in a narrow $12 range on the international market as investors prepared for the US Federal Reserve’s interest rate decision and Chair Jerome Powell’s remarks on the trajectory of upcoming hikes.
Furthermore, After dropping by $29, the per-ounce price reached $1,939 in the end.
We anticipate that the Fed will make a decision at 2pm ET (1800 GMT) to most likely raise rates by 25 basis points, according to the CME FedWatch tool. Furthermore, several Wall Street banks cannot decide whether to raise rates or take a break.
In the meantime, domestic silver prices held steady at Rs. 2,200 per tola and Rs. 1,886.14 for 10 grammes.
