Canada Global (Web News) Gold rebounded after falling below the crucial Rs188,000 threshold the previous day and experiencing its sharpest decline in recent months as gloomy economic data increased worries about an impending economic downturn.
Gold’s price fell as low as Rs5,200 per tola on Thursday, but on Friday it started to rise again.
According to information made public by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold increased by 300 rupees per tola and 257 rupees per 10 kilos, respectively, to settle at Rs183,700 and Rs157,493.
The group noted that the majority of buyers in the neighbourhood market are now gold investors. In the past, people kept their money in US dollars to protect them from the effects of the rupee’s devaluation during a period of high inflation.
After the dollar’s shortage on the open market, they said, investors began shifting to the bullion market. Contrasting with the interbank market’s price of Rs227, illicit traders were charging Rs250–260 for the dollar on the black market.
Analysts contend that the decrease from the previous day was a healthy correction that allowed more buyers to enter, which led to a rebound in prices.
Goldsmiths predict that due to the rupee’s depreciation against the US dollar during the present cycle, the price of gold may increase to Rs200,000 per tola.
They do, however, also think that a $6–$8 billion infusion from international and bilateral creditors will pop Pakistan’s price bubble.
Price of gold dropped by $9 per ounce on the global market before settling at $1,839 an ounce.
