Pakistan Witnesses Massive Single-day drop in Gold prices

Gold prices in Pakistan have seen their biggest single-day drop ever, as the precious metal plummeted by a shocking Rs9,000 per tola on Tuesday. This sudden plunge has been attributed to the slight recovery of the Pakistani rupee against the US dollar in recent days.

The gold price today on 1st February 2023 is Rs.202,000 per tola for 24-karat and Rs.173,190 for 10 Grams.

The price of gold fluctuates daily, often tracking changes in foreign currency exchange rates. As such, the correlation between gold prices in Pakistan and its currency value is undeniable. It has been noted that on Tuesday the Pakistani rupee appreciated slightly against the US dollar for the first time in over two weeks – leading to gold prices dropping drastically by Rs9,000 per tola.

Also Check: Today Gold Price in Pakistan 1st February 2023

Despite this significant decline, it’s worth noting that local gold remains “over cost” by Rs2,500 per tola compared to Dubai, which is generally considered a benchmark for international gold prices. This suggests that even after Tuesday’s dramatic fall in local gold prices, there may still be a further decline on the cards before domestic values reach parity with international ones.

In the international gold market, spot gold prices dropped by $22 per ounce to their lowest level since January 19th, settling at $1,902 per ounce. Despite this single-day drop, it is on track to record a third consecutive monthly rise in January due to its 4.3% growth so far in the month.

silver prices also decreased

In addition to this drop in gold prices, silver prices also decreased significantly in the domestic market dropping by Rs50 per tola and Rs42.88 per 10 grams to settle at Rs2,250 and Rs1,929 respectively.

These drops have raised concerns amongst investors and analysts as they struggle to make sense of these drastic fluctuations in the global markets. Analysts have attributed this volatility largely to uncertainty surrounding the global political climate which is driving up demand for safe-haven investments like gold while simultaneously depressing demand for riskier assets like equities and commodities.