Gold prices in Pakistan witness massive drop

Gold prices in Pakistan witness massive drop

KARACHI – The gold prices witnessed a huge decrease on Wednesday amid the recovery of the Pakistani rupee against the US dollar.

According to Sindh Sarafa Association, the price of gold decreased by Rs 8,600 per tola and settled at Rs 145,300 after touching near an all-time high at Rs162,000 per tola last week.

The declining trend of the precious metal comes on account of the rising strength of the Pakistani rupee against the USD. Reports also suggest that bullion plunged sharply as investors liquidated some long positions.

Meanwhile, the recent dip was in line with the dealers' expectation of the market to undergo a correction after scaling to new peaks in previous sessions.

Gold is considered a hedge amid skyrocketing inflation and is often used as a safe store of value during times of uncertainty. In the international market, the price of precious metal plunged by $14 per ounce to settle at $1,766.

On the other hand, silver prices in the local market shed Rs20 per tola and Rs17.15 per 10 grams to settle at Rs1,620 per tola and Rs1,388.88 per 10 grams today.