Gold price touches record high in Pakistan
Gold prices have surged to another all-time high in Pakistan as the country’s economic outlook remains bleak amidst a stalled IMF bailout program. The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) announced the price of 24 carats gold by Rs1,400 per tola and Rs1,200 per 10 grams to reach record Rs226,900 and Rs194,530, respectively.
The rise in gold prices is in line with the increase in the precious metal’s value in the international market, which saw it rise by $5 to settle at $2,022 per ounce. The uptick in gold prices can be attributed to a weakened dollar and prevailing economic risks, as investors prepare for US inflation data to gauge the Federal Reserve’s policy path.
The bullion rate has been on a steady upward trend in Pakistan due to weakened economic fundamentals, currency depreciation, and soaring inflation rates. During such times, people tend to buy gold as a means of protecting themselves against inflation and currency depreciation.
Unfortunately, there has been no respite for the masses as weekly inflation hit an all-time high of 48.35% year-on-year (YoY) with prices of chicken and wheat flour increasing during the seven-day period ending May 4.
Adding to the country’s woes, it appears that Pakistan may not receive the crucial tranche from the IMF anytime soon. The IMF’s Executive Board will not be discussing the country’s loan program until May 17, which delays the revival of the IMF program and negatively impacts the currency market, thereby bolstering the demand for gold.
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In addition, the price of silver has also hit record highs as it increased by Rs30 per tola and Rs25.72 per 10 grams to settle at Rs2,900 and Rs2,486.28, respectively.
In conclusion, the rising gold prices in Pakistan are a reflection of the economic uncertainties facing the country. With a weakened currency, soaring inflation rates, and stalled IMF bailout program, people are turning to gold as a safe haven investment to protect their wealth.
