Gold prices fell by Rs300 per tola on Friday after remaining unchanged in the last three days on account of New Year holidays in the US.
A tola was trading at Rs67,500, according to the data compiled by the All Sindh Saraf and Jewellers Association, down from the previous level of Rs67,800, which slightly below its all-time high.
The prices compiled by the ASSJA come with a lag of a day after changes in international prices. The precious metal was trading unchanged in the last three days because US markets were closed for New Year’s vacations.
Pakistani traders adjust gold prices based on price movements in the international market and fluctuation in the dollar rates as well as market forces of demand and supply. Gold usually goes up when the dollar falls as investors move away from dollar-backed funds to gold and vice versa.
Gold price hit its highest level of Rs68,000 per tola on December 20 as international gold prices continue to surge.
When looked in the longer context, rupee depreciation, international price and local demand has been driving the gold rates up. For example, gold prices increased by 8% in the last three months. The trend may hold for a while given the uncertainty around rupee-dollar exchange rates.
When this report went online, gold futures were trading at $1,295 per ounce in the international market, their highest level in the last seven months.