Due to the fresh depreciation of rupee against the dollar, gold has touched an all-time high at Rs72,200 per tola. Jewelers have added the rupee fall impact value in the gold’s retail price.
An announcement was made by the All Sindh Saraf and Jewellers Association (ASSJA) that gold price will be increased by Rs1,000 per tola to reach Rs72,200 due to the raise $3 per ounce to $1,294 in the global market.
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Pakistan Mercantile Exchange (PMEX) Managing Director Ejaz Ali Shah said, “The rupee depreciation led to a rise in gold prices in Pakistan despite the fact that it largely remained stable in global markets.”
He said that Pakistan imports gold and due to rupee devaluation, there was no choice left but to adjust the gold prices accordingly. On Wednesday, according to the State Bank of Pakistan, the rupee depreciated by Rs0.30 and reached Rs141.39 in the inter-bank market. Also since 8th March 2019 the rupee has depreciated by Rs2.55, or 1.8% in the last 4 weeks.
The open market witnessed rupee loss by Rs0.50 to reach Rs143 against the dollar.
According to the State Bank spokesman, “the rupee is moving downwards on market expectations based on (weak) economic fundamentals.”
He said that it is true that the expectations of the market for an IMF bailout package and the condition of the balance of payments have dragged the rupee down. This is why the gold prices in the local market have gone up in the past 15 months.