Gold price in Pakistan takes a hit as international rates fall

KARACHI: The rates of gold in Pakistan slipped on Thursday amid a decline in the international prices of the yellow metal while the local currency also appreciated against the dollar. 

The price of gold (24 carats) lost Rs2,800 per tola and Rs2,401 per 10 grams to settle at Rs220,200 and Rs188,786, respectively, according to data issued by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). 

Meanwhile, the price of the yellow metal fell by $15 to settle at $1936 per ounce in the international market today. 

On Wednesday, the yellow metal fell 0.5% in the international market after the Federal Reserve was given more room to hike rates in a bid to cool inflation. This led to the dollar's upward trajectory while the 10-year Treasury yields were sent to a nine-month peak. 

The precious commodity has gained Rs8,000 per tola in the month of July in the local market.

The gold rate has been volatile in Pakistan recently amid continued political and economic uncertainty, and high inflation. People prefer to buy gold in such times as a safe investment and a hedge.

Data shared by the association showed the price of silver prices also declined by Rs50 and Rs48.86 to settle at Rs2,750 per tola and Rs2,357.68 per 10 grams, respectively.