Business Desk
Apr 09, 2024
After underscoring consecutive upticks to reach a historical zenith, gold prices in Pakistan has registered another significant increase on Tuesday, making a show of its skyrocketing upward pace.
With the latest upsurge of Rs1,900 in its value, gold rate has settled to a new record high of Rs247,600 per tola (11.66 grams) in Pakistan today, providing protection to investors from rupee depreciation. Meanwhile, data shared by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the 10 grams gold price in Pakistan rose by Rs1,629 to settle at Rs212,277.
Gold has emerged as a safe asset during the ongoing economic crisis and, as a result, people have been aggressively buying it to protect their cash from deflation. Moreover, an increase in the demand for the precious commodity ahead of wedding season immediately after Eid-ul-Fitr triggered an increase in the price.
This historical price hike comes on the heals of the record increase of $19 in yellow metal's per ounce rate in the international market, propelling it to $2,374 which was steered by speculative buying and persistent tensions in the Middle East, which overshadowed strong US payrolls number last week.
Meanwhile, data shared by the association also showed that the price of silver per tola and per 10 grams remained unchanged at Rs2,650 and Rs2,271.94, respectively.
With the latest price hike, per tola bullion price in Pakistan's domestic market has underwent an increment of almost Rs5,500 in the last two sessions.
Gold price in Pakistan is announced by the association, which determines gold prices in Pakistan for local markets six days a week from Monday to Saturday.
Pakistan is a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the precious metal locally.
Accordingly, the gold rate in Pakistan is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets. The latest price for local markets was determined to keep in view the prices at which trade took place among buyers and sellers.
Gold price in Pakistan has been volatile in Pakistan recently amid continued political and economic uncertainty and high inflation. People prefer to buy this precious commodity in such times as a safe investment and a hedge.
Local dealers believe that the return of inflationary days in Pakistan and worldwide has once again invited investors’ attention towards the yellow metal as safer commodities become attractive at such a time.
On the physical side, demand for gold in Pakistan recently picked up pace as some consumers bought into a retreat in domestic prices as the wedding season will kick off immediately after Ramadan.
