Gold Prolongs Lower Rupee Appreciation and Political Stability

A representative image of gold jewelry sets. — Reuters/File
  • Gold price drops by Rs 900 per tola to stand at Rs 131,400.
  • Investors are once again relocating their stocks from safe assets to riskier assets.
  • Domestic silver prices remain unchanged.

KARACHI: Amid the recovery in other commodity markets, the price of gold in Pakistan fell 900 rupees per tola to settle at 131,400 Pakistani rupees on Monday.

Meanwhile, the precious commodity shed Rs 772 per 10 grams to close at Rs 112,654.

Investors, who were shifting their capital into gold amid political uncertainties and growing concerns over economic stability, divested their investment from the safe-haven asset.

The correction in gold was long overdue as political uncertainty had caused panic everywhere and people were relocating their capital to buy gold as some regulations had made it difficult for everyone to buy dollars.

On April 7, gold hit a new high (Rs 134,300 per tola) as the rupee devalued.

On the international market, the price of the yellow metal recorded a meager gain of $5 an ounce to settle at $1,953.

Gold rates in Pakistan are about Rs 5,000 below cost compared to the market rate in Dubai.

Meanwhile, domestic silver prices remained unchanged at Rs1,520 and Rs1,303.15 today.

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