KARACHI: Pakistan‘s gold prices increased to yet another record high on Wednesday as the nation’s overall economic prospects remained bleak and inflation continued to set new highs.
The price of gold (24 carats) increased by Rs 1,700 per tola and Rs 1,457 per 10 grams to reach Rs 222,700 and Rs 190,929, respectively, according to data published by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
As economic fundamentals deteriorated, the rupee fell in value, and inflation shot up to record levels, the price of gold in Pakistan has been steadily increasing. People like to purchase yellow metal in these situations to safeguard themselves against inflation and currency depreciation.
Pakistan has the fastest-rising prices in Asia, surpassing even Sri Lanka, where inflation was recorded at 35.3% the previous month. Inflation in April was measured at 36.4% year-on-year, a record high.
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The inability to reach an agreement with the International Monetary Fund (IMF) for a crucial economic rescue, without which the nation risks default, is another factor driving up demand for gold.
The IMF programme’s failure to resume on schedule has a negative effect on the currency market, which increases demand for gold.
In the meantime, the price of gold on the world market increased by $25 to $2,015 per ounce.
According to data provided by the organisation, the price of silver increased by Rs 20 per tola and Rs 17.15 per 10 grams to settle at Rs 2,750 and Rs 2,357.68, respectively. The APSGJA claimed that these prices were also record highs.
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