The price of gold in Pakistan fell below Rs200,000 per tola mark as it dropped Rs2,000 per tola to Rs198,000 on Wednesday, according to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

The drop came despite an increase in the international price of the yellow metal. In the global market, the rates of the precious metal spiked $11 to $1,883 per ounce.

Gold claws back some ground after steep losses

Speaking to Business Recorder, APGJSA Chief Haroon Chand said “rupee’s recovery against the US dollar which is one of the reasons behind the fall in gold price.”

“The primary reason is that the bubble around the speculative atmosphere in gold market is now deflating.”

He added that there was no demand for physical gold in the market due to economic turmoil in Pakistan hence “it was the speculators who pushed the prices up in the past few days.”

Gold steadies as investors cool heels before key economic data

Meanwhile, rupee appreciated 1.08% or Rs2.95 in the inter-bank market on Wednesday to close at 273.33 against the US dollar.

Gold price in Pakistan saw massive fluctuations in the past few days due to significant rupee depreciation.

Experts say that uncertainty in gold market will persist unless there is complete clarity regarding the country’s economic outlook. In the near future, market is expected to stabilise after the resumption of the International Monetary Fund (IMF) programme.