The price of gold fell slightly on the second day of 2019 but still remained close to its all-time high.
The price of a tola decreased by Rs100 to Rs67,800 on Wednesday compared to the previous day’s tally, according to data compiled by the All Sindh Saraf and Jewellers Association.
However, the precious metal is still trading close to its highest level of Rs68,000 per tola, the price of December 20, as international gold prices continue to surge.
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.
The prices compiled by the ASSJA come with a lag of a day after changes in international prices. Gold usually goes up when the dollar falls as investors move away from dollar-backed funds to gold and vice versa.
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 more than 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 $1,288 per ounce in the international market, their highest level in the last seven months.