In a surprising and significant development, the gold market in Pakistan has experienced a dramatic decline, with prices plummeting by over Rs. 30,000 since their peak in August. This sudden shift has captured the attention of investors, economists, and consumers alike, raising questions about the factors behind this sharp downturn and its potential impact on the broader economy.
The primary factor behind this sharp decline in domestic gold prices is the ongoing strengthening of the Pakistani Rupee (PKR) against the US Dollar in the open market. As gold is typically denominated in U.S. dollars, the appreciation of the local currency against the greenback directly impacts the value of PKR-denominated gold, causing it to fall.
The relentless decline in the value of 24-karat gold continues, with its price now resting at Rs209,400 per tola, reflecting a substantial decrease of Rs2,600 in a day.
This persistent downward trend in gold prices has been particularly notable since August 31st, when it reached its peak at Rs239,800. Since that high point, gold has experienced an accumulated loss of Rs30,400 per tola, marking a significant decrease of 12.68%.
The sharp decline in gold prices has attracted a lot of attention and is expected to have broad ramifications for investors and anyone keeping watch of the price of the precious metal in Pakistan’s ever-changing economic climate.
