Gold price sees biggest one-day decline, retreats to Rs201,500 per tola in Pakistan

The gold price in Pakistan on Tuesday fell by Rs9,000 per tola to Rs201,500 owing to slight appreciation in rupee coupled with a rout in global price of the yellow metal.

According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), this was the biggest one day decline in the price of the precious metal.

The per-tola price of gold spiked to a historic level of Rs210,500 on Monday owing to persistent depreciation in rupee and widespread speculation in the commodity market.

Speaking to Business Recorder, APGJSA President Haroon Chand said the fall in the price of gold in the domestic market was due to appreciation of the rupee against the US dollar and expectation of resumption of the International Monetary Fund (IMF) programme amid meeting between the government and the global lender.

“Moreover, the decline in the international price of gold also played a huge part,” he said.

As per the State Bank of Pakistan (SBP), rupee recovered Rs1.74 or 0.65% to settle at Rs267.89. This was the first appreciation in the local currency after 29 trading sessions.

Federal Minister for Finance and Revenue Mohammad Ishaq Dar on Tuesday met the IMF mission and held discussions aimed at the resumption of the bailout programme.

On the other hand, the international price of gold dropped by $22 per ounce to $1,902.

“All these developments helped curb the speculations in the market,” Chand said.