Gold prices fell by Rs600 on Saturday and a tola is now worth Rs67,100, according to data compiled by the All Sindh Saraf and Jewellers Association.
The price of gold remained unchanged at Rs67,500 per tola through most of the week on account of the New Year holidays in the US. It went up by Rs200 on Friday before falling back to its current level the next day.
The prices compiled by the ASSJA come with a lag of a day after changes in international prices. 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 continued to surge.
When looked at in the longer context, rupee depreciation, international price and local demand has been driving the gold rates up. According to the Pakistan Bureau of Statistics, gold prices increased 20% in 2018.
When this report went online, gold futures were trading at $1,292 per ounce in the international market, their highest level in the last seven months.