Gold prices fell by $1,600 per tola and $1,372 per 10 grams.
Gold prices fell for the second consecutive trading session in Pakistan on the hope that the local currency, which has gained more than 2% in the last session, will recover against the US dollar.
Gold (24 carat) was fixed at $1,600 per tola, $1,372 per 10 grams, $200,000 and $171,468 respectively, according to the All Pakistan Gems and Jewelers Association (APSGJA).
Although the yellow metal fell more than 3,000 points in two trading sessions, it reached a total of $5,900, or 3.03% per tola, for the week ended March 4.
The commodity reached 210,500 per tola on January 30, 2023; However, gold prices began to fall after the rupee began to recover in hopes of reviving a $6.5 billion International Monetary Fund (IMF) bailout.
Meanwhile, refinancing from China has clouded the outlook for gold, which is expected to boost Pakistan's dwindling foreign exchange reserves. A day earlier, Finance Minister Yshak Dar announced the completion of formalities with the Industrial and Commercial Bank of China (ICBC).
"ICBC has confirmed the circulation of $1.3 billion facility returned to ICBC by Pakistan in recent months," Dar tweeted.
He said the facility will be disbursed in three installments, the first of which $500 million has been received by the State Bank of Pakistan.
It should be noted that Pakistan meets almost all of its gold demand through imports and traders follow international prices to determine the price in the country. Jewelers imported against the US dollar and UAE dirhams before converting the price into rupees.
Meanwhile, the domestic silver price remained unchanged at $2,140 per tola and $1,834.70 per 10 grams.
Globally, gold prices hit a two-week high and were on course for their first weekly gain in five weeks as the US dollar weakened and Treasury yields rose on hopes of more Federal Reserve hikes. Gold was down $8 at $1,856 per ounce.
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