Understanding how the decline in gold prices will affect Pakistan’s economy is essential. The country’s domestic demand and gold imports may be impacted by the drop in global gold prices, which could have an effect on the country’s balance of payments and foreign exchange reserves. Comprehensive coverage, including expert analysis and insights into how governments and corporations are reacting, is required to emphasise the potential consequences on diverse stakeholders. Overall, the development emphasises how crucial it is to continue to be alert and sensitive to developments in international marketplaces. According to information supplied by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) declined by Rs550 per tola and Rs471 per 10 grammes to attain Rs216,850 and Rs185,914, respectively.
Gold Remains a Popular Asset in the Face of Pakistan’s Economic Crisis
Global Business News: Last week, the price of the yellow metal hit a record high of Rs 218,600 a tola. It then decreased in price on the foreign market, reaching Rs216,000 a tola on April 15. As the new week got started, it was once more increasing. However, the cost of gold dropped by $31 to finish the day’s trading at $1,974 for an ounce on the global market. As a result, the rate on the domestic market decreased as well.
The value of the rupee, which was constant and closed at Rs283.89 against the US dollar in the interbank market, was another factor in the decline.
On April 11, the interbank market saw the rupee hit an all-time low of Rs288.43 against the US dollar. The US dollar continues to trade over Rs280 despite its recent recovery. The country’s ongoing economic crisis is to blame for the increasing demand for precious metals and the subsequent increase in their price. People choose to purchase gold during difficult economic times because it is thought to be a hedge against inflation and the depreciating value of the local currency, as per economic magazines.
Moreover, according to a Topline Securities analysis, gold was the best-performing asset in 2022. The price of silver in the domestic market, according to data provided by the organisation, remained stable at Rs2,530 per tola and Rs2,170 for 10 grammes.
