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Gold Prices Decline as Dollar Slips, Speculators Face Crackdown

Amjad Alam, a shopkeeper in Peshawar's renowned Sarafa Bazaar, reported that since this morning, the price of gold per tola has plummeted by Rs 600, reaching a new low of 1 lakh 95 thousand rupees.
by TNN Editor - 09 Oct, 2023 1598
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Kaif Afridi

In response to a substantial decline in the value of the dollar and heightened measures against speculators, gold prices are on a downward trajectory. Amjad Alam, a shopkeeper in Peshawar's renowned Sarafa Bazaar, reported that since this morning, the price of gold per tola has plummeted by Rs 600, reaching a new low of 1 lakh 95 thousand rupees.

Alam pointed out that the current season usually witnesses a flurry of wedding ceremonies, yet customer turnout has been notably scarce. Even those who do visit the market are adopting a more cautious approach to their purchases. Previously, individuals would purchase 5 tola gold, but now they are hesitant to buy more than 2 tola gold, largely due to the looming specter of inflation.

Over the past 15 to 20 days, gold prices have witnessed a staggering decline of 40 thousand rupees, a substantial drop by all accounts. However, the burdens of rising food prices and exorbitant electricity bills continue to weigh heavily on the populace. Alam urged the government to focus on addressing the essential necessities of life, especially given the decreased value of the dollar and signs of rupee stabilization.

Also Read: Pakistan Dispatches Medical Team to Aid Afghan Earthquake Victims

Economists posit that the Pakistani government and state institutions' vigorous efforts to curb dollar smuggling and hoarding will further erode the dollar's value, ultimately fostering greater stability in the Pakistani rupee. This, in turn, is anticipated to have a cascading effect on the prices of various commodities, ultimately leading to a reduction in inflation.

It is noteworthy that plummeting crude oil prices in the global market have also impacted Pakistan. The caretaker government initiated modest relief measures for the public starting October 1, announcing an Rs 8 reduction in petrol prices and a Rs 11 reduction in diesel prices. Sources suggest the possibility of further reductions in petroleum product prices from October 16 onwards.