Gold price in Pakistan witnessed a significant hike of Rs9,400 on Thursday owing to rupee depreciation with the per-tola price of the yellow metal crossing Rs200,000 again to reach Rs206,500, according to data shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The Pakistani rupee saw yet another dramatic fall in just over a month, plummeting 6.66% against the US dollar during the trading session on Thursday.
As per the State Bank of Pakistan (SBP), the rupee settled at 285.09 against the greenback, a decline of Rs18.98 in the interbank market.
Despite the sharp hike, APGJSA data says the price of gold is still Rs3,000 under-cost when compared with its price in Dubai.
The price of gold in the domestic market remains pegged with the dollar rate since Pakistan is a net importer of gold. Gold’s international price per ounce dropped by one dollar to $1.836.
When the rupee remains stable, the gold price in the domestic market follows the trajectory of its price in the international market. However, the fluctuating rupee has changed that trend and exchange rates also sharply influence gold’s price.
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