KARACHI: On Wednesday, the price of gold in Pakistan reached an all-time high of Rs134,400 a tola, as currency depreciation offset pulls from risky assets to safe-haven assets.
The gold rate concluded at Rs134,400 per tola and Rs115,226 per gram, according to the All Sindh Saraf and Jewellers Association (ASSJA), with a new rise of Rs1,400 per tola and Rs1,200 per gram.
During inflationary periods, investors acquire gold as a hedge against the depreciation of their respective local currencies.
The rise in gold was considered a sign that the commodity had turned positive, as risk-off sentiment seized financial markets amid the country’s prolonged political turmoil.
In the domestic market, it has been on an increase for the previous four working days.
The product has risen by Rs2,400 in the previous days, with a net increase of Rs1,400 per tola (Friday-Wednesday). On Monday, the bullion price was Rs133,000 per tola.
The price of yellow gold rose $3 per ounce on the international market to $1,863.
According to dealers, the rupee depreciation pushed gold to a new high. Because Pakistan is a net importer of gold, the currency’s depreciation affected gold prices.
According to a commodities trader, economic uncertainty has produced widespread fear, and many are diverting their funds to gold purchases since certain rules have made it impossible for everyone to acquire dollars.
When compared to the Dubai market, gold prices in Pakistan are roughly Rs1,500 lower.
Meanwhile, silver prices in India stayed constant Monday at Rs1,500 per tola and Rs1,286 per ten gram.