the rupee making against the US dollar the per tola price of 24 karat gold decreased by Rs2,600 and was sold at Rs209,400 on Monday compared to its sale at Rs212,000 on the last day of the outgoing week.
The price of 10 grammes of 24 karat gold also decreased by Rs2,229 to Rs179,527 from Rs181,756 whereas the price of 10 grammes 22 karat gold went down to Rs165,544 from Rs166,610, according to the All Sindh Sarafa Jewellers Association.
The value of gold has diminished in Pakistan due to the strengthening of the Pakistani rupee against the US dollar. This shift in currency exchange rates has impacted the price and demand for gold within the country. As the rupee appreciates in comparison to the dollar, the cost of importing gold, which is typically priced in dollars on the global market, becomes cheaper.
This situation can result in a decrease in the local price of gold, making it less attractive to investors and consumers. A stronger rupee can also discourage gold purchases as a hedge against currency devaluation, which is a common reason for buying gold in many countries.
The fluctuations in currency exchange rates often play a significant role in the pricing of commodities like gold in international markets. In Pakistan’s case, a stronger rupee can lead to a reduced appeal of gold as an investment, potentially affecting the country’s gold market.
