Gold Falls Rs4,900 per Tola in Pakistan as Global Prices SlidePakistan

On Thursday, the gold price per tola had fallen by Rs10,900 to Rs416,536, while a day earlier it had shed Rs3,400 to settle at Rs427,436, according to reports by Aaj English, Business Recorder and The Express Tribune.

In the international market, gold prices declined by $49 to reach $3,891 per ounce, tracking the fall that pushed local prices lower. The international slide followed a stronger US dollar and rising expectations of a Federal Reserve rate hike, which weighed on bullion prices, according to The Express Tribune.

The slide extends a correction that began earlier in the week. On Tuesday, the price had fallen by Rs1,500 to Rs430,836 per tola, and on Wednesday it shed a further Rs3,400 to Rs427,436, according to The Express Tribune. Thursday’s steep fall of Rs10,900 then took the rate to Rs416,536, before Friday’s further drop of Rs4,900.

Silver also became cheaper in the local market, with its price falling by Rs111 to Rs5,467 per tola, according to the association’s rates.

Gold prices in Pakistan are set daily by the APGJSA on the basis of international bullion rates and the rupee-dollar parity, so movements in the global market are reflected in local prices the same day. Jewellers say the price of a finished piece is higher than the quoted rate, as making charges and the shop’s own spread are added separately.

The latest fall comes after a volatile month for the precious metal in Pakistan. The 24-karat rate had touched highs above Rs439,000 per tola in recent weeks before the correction, and it has now fallen by more than Rs17,000 per tola over the past week, according to market data.