KARACHI: Battered by a drop in the dollar rate, gold decreased Rs1,650 per tola (11.66 grams) to Rs56,350 in Pakistan even as the precious metal gained around $4 in value in the international market on Saturday.

“Gold plunged in line with dollar’s value (in Pakistan),” All Sindh Saraf and Jewellers Association President Haji Haroon Chand told The Express Tribune.

Pakistan meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country. Jewelers import the metal against the US dollar and UAE dirham before converting its price into rupees.

“Since dollar has dropped by Rs6.50 in the open market in the last two days, the association has adjusted down the bullion price accordingly,” he added.

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The drop in dollar value comes as China reportedly agreed to give $2 billion to Pakistan to arrest the slide of foreign currency reserves.

On the contrary, gold inched up $4 per ounce (31.10 grams) to $1,224 in the international market by the time the change in gold price in rupee-denomination was reported, according to the association.

Previously, when gold was hovering at $1,224 per ounce on July 20, the association had calculated the bullion price at Rs59,800 per tola.

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In the international market, gold has hovered around the same level and has lost value in the last few months amid strong growth of the US economy. Gold hovered around the $1,320 level on May 15, losing over 7% in the last three months.

Published in The Express Tribune, July 29th, 2018.

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