KARACHI (National Times)- In line with the global markets, domestic gold prices fell by Rs250 per tola and Rs214 per 10 grams owing to the rising strength of the Pakistani rupee against the US dollar.

According to rates issued by All Sindh Sarafa Association, gold prices clocked in at Rs125,300 per tola and Rs107,425 per 10 grams on Friday.

Speaking to Geo.tv, a commodity analyst said the price of gold in the local market is completely dependent on two factors.

“Currency movement and international price changes have a significant impact on the price of the precious commodity in Pakistan,” he elaborated.

Local investors keep their eyes on the international price movements and change their mood in the buying and selling of gold bars in the local markets.

Currently, they are a bit reluctant to engage in bulk buying of yellow bars after smelling a drop in world gold prices.

Gold price in the international market receded by $8 per ounce to settle at $1,826.

It is pertinent to mention here that All Sindh Sarafa Association determines local prices based on rupee-dollar parity and international rates.

According to the market practice, local prices of gold usually go down on the rupee’s appreciation against the US dollar and rising prices of commodities in the international market.

A firmer tone to economic data and strengthening currency would undermine support for gold, which has benefited in recent times from the plunge in local currency.

However, it is pertinent to mention that the gold rates in Pakistan are around Rs500 below cost compared to the gold rate in the Dubai market.

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