Pakistan’s bullion market reopened on Tuesday after a month-long hiatus with the price of 24-carat gold witnessing a steep fall of Rs15,500 per tola. The yellow metal was priced at Rs199,500 per tola, according to the rates shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10 gram gold stood at Rs171,039.
After nearly a month, the bullion market issued the gold rates in Pakistan on Tuesday, showing a drop of Rs15,500 per tola from the rates last issued on September 12.
The traders had refrained from issuing gold rates as bigwigs continued to discuss ways to keep the market “free from speculation”, following a crackdown from law-enforcement agencies.
“The bullion market is not issuing new gold rates amid a crackdown against rate speculation and hedging,” a local trader, on condition of anonymity, had told Business Recorder last month. Another trader said there was no exchange taking place as reports suggested a raid had taken place against some sections of the market.
The caretaker government also constituted a task force consisting of law enforcement and intelligence agencies for “decisive action against gold mafia” and smuggling of precious metals.
Gold prices in Pakistan closely follow trajectory of the US dollar and international rates of the commodity as the country remains a net importer of the precious metal.
Amid rupee’s depreciation against the dollar in September, the price of the yellow metal, considered a safe-haven asset, reached nearly Rs240,000 per tola.
However, aided by the government’s crackdown against currency smugglers and hoarders, the rupee has since then cumulatively gained 9.5% since it hit a record low of 307.1 in inter-bank market on September 5.
This has also caused a significant decline in gold rates in Pakistan.
A decrease in international rates of the yellow metal also played a role in bringing down the prices in local market.
In the international market, the gold rate per ounce on Tuesday was recorded at $1,856, down by $55 from $1,911 on September 12.
Meanwhile, silver rates shed Rs50 to settle at Rs2,500 per tola.