KARACHI: Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) on Friday showed that gold prices in Pakistan surged to an all-time high, just days after crossing the Rs218,000-mark for the first time.
The price of 24-carat gold rose by Rs1,100 per tola and Rs943 per 10 grams to reach Rs218,600 and Rs187,414, respectively. The rupee’s declining value contributed to gold rates hitting a record high of Rs218,300 on Tuesday. The price of gold fell in the past two days due to a recovery of the local currency, but has risen again today by over Rs1,000.
Gold prices have increased significantly in recent times as a result of a weakened rupee and rising inflation. During times of economic turmoil, people usually buy gold as a hedge against inflation. Additionally, the price of the yellow metal often goes up during Ramadan.
As delays persist in reaching an agreement with the International Monetary Fund (IMF) for a much-needed economic bailout, investor attention shifted to gold this week. The delay in the revival of the IMF programme has negatively impacted the currency market, bolstering the demand for gold.
According to the APSGJA, the price of gold in Pakistan is currently Rs4,000 per tola cheaper than the Dubai market, indicating that the Pakistani gold market is cheaper than the global market. As per the data shared by the association, the price of silver in the domestic market also reached record high. The rate of silver increased by Rs20 per tola and Rs17.15 per 10 grams to reach Rs2,570 and Rs2,203.36, respectively.
