Karachi: Friday’s domestic gold price fell somewhat, following foreign market fluctuations.
The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported that gold (24 carats) dropped Rs250 per tola and Rs214 per 10 grammes to Rs235,750 and Rs202,118, respectively.
International rates fell $9 to $1,952 per ounce.
Moreover, Gold destined for its third weekly loss on the international market. Investors are watching US Democrats-Republicans talks on lifting the federal debt ceiling, which is approaching.
The first US default would occur if the $31.4 trillion debt ceiling not increased.
While, International investors closely watch the US Federal Reserve’s rate hike path. High interest rates devalue gold.
Economic and political upheaval, excessive inflation, and currency depreciation have kept the domestic gold price volatile. In such circumstances, people acquire gold as a hedge and investment.
On Friday, the interbank rupee closed at Rs285.15 per US dollar after hitting an all-time low of Rs298.93 on May 11. State Bank of Pakistan statistics shows it gained Re0.59 or 0.21% against the US dollar.
The jewellers’ body also stated Pakistani gold was Rs5,000 per tola “overcost” compared to Dubai bullion. Pakistani gold is more expensive than global gold.
The association reported that silver prices stood at Rs2,900 per tola and Rs2,486.28 per 10 grammes.
