From the past few days of September, we witnessed a significant decline in gold prices, causing a stir in the market. The precious metal’s value dipped by over 30,000 units within a short span.
However, there was a shift in this trend on 12th September, 2023, when domestic bullion ended its seven-day downward spiral.
The price of 24-karat gold rebounded impressively, surging by Rs.5,600 to reach Rs.215,000 per tola. This turnaround can be largely attributed to the recent depreciation of the Pakistani Rupee (PKR) against the US Dollar, with the PKR losing 2 rupees in the open market.
According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold also experienced a significant increase, reaching Rs.184,585 per tola, marking a substantial gain of Rs.5,058.
Similarly, the price of 10-gram 22-karat gold stood at Rs.168,697 per tola, reflecting a notable increase of Rs.4,131. This upturn in gold prices offers a glimmer of hope for investors and those in the bullion market after a period of decline.
It’s important to note that gold is globally denominated in U.S. dollars, so when the local currency, PKR, weakens against the greenback, the value of PKR-denominated gold tends to rise.
