Gold loses traction, price drops by Rs150 per tola

— Reuters/File
— Reuters/File
  • Price of gold declines by Rs150 per tola and Rs129 per 10 grams.
  • Gold dealers reject govt’s decision to raise GST on gold, silver from 1% to 17%.
  • Silver prices in the domestic market remain unchanged.

KARACHI: The price of gold in Pakistan receded on Tuesday as investors sought cover from Omicron-led uncertainty, inflation and its impact on the central bank’s rate hike trajectory.

The precious commodity fell around Rs150 per tola and Rs129 per 10 grams to settle at Rs126,150 per tola and Rs108,153 per 10 grams, respectively.

Meanwhile, the yellow metal stayed above the key $1,800-per-ounce level in the international market despite a decrease of $22. The price settled at $1,803.

It is worth mentioning that gold dealers have rejected the government’s decision to raise GST on the gold industry, urging the government to withdraw the decision in the larger interest of their badly affected workers and industry.

In the supplementary finance bill, which was introduced in Parliament last week, the government had proposed an increase in the General Sales Tax on silver and gold from 1% to 17%.

Earlier, speaking to, AA Commodities Director Adnan Agar had said: “In Pakistan, we cannot see a major price decline due to steep depreciation of our currency.”

“Any major price decline in international gold prices would be eclipsed by the rising dollar price in Pakistan and an upward trend would be seen as double price gain for gold,” Agar had said.

In 2021, the price of gold recorded an overall gain of Rs12,000 per tola compared to last year’s gain of Rs25,600.

Meanwhile, silver prices in the domestic market remained unchanged today at Rs1,460 per tola and Rs1,251.71 per 10 grams.

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