ISLAMABAD: Gold prices in Pakistan surged to an all-time high on Friday, days after the yellow metal breached the 218,000 rupees mark for the first time.
The rate of gold (24 carats) went up by 1,100 rupees per tola and 943 rupees per ten grams to reach 218,600 rupees and 187,414 rupees, respectively, the latest data released by the All Pakistan Sarafa Gems and Jewellers Association showed.
Gold prices hit a record high of 218,300 rupees on Tuesday as the rupee’s value decreased. However, they fell for the last 2 days as the rupee recovered before rising by over Rs1,000 again on Friday.
Separately, the rupee went up 0.51 rupees or 0.18 per cent against the greenback in the interbank market, while inflation during the 7-day period ending on 13 April increased 44.61 per cent year-on-year.
The rate of gold has surged sharply recently on the back of a weakened local currency and soaring inflation. During times of economic meltdown, people prefer to buy precious metal as a hedge against inflation. The rate of gold also usually increases during Ramadan.
Attention towards gold
Investors’ attention shifted to the yellow metal during the week as delays continued in reaching a deal with the International Monetary Fund for a desperately required economic bailout.
The delay in the revival of the loan program negatively impacted the currency market, which, in turn, bolstered the demand for gold.
The association also mentioned that the rate of gold is 4,000 rupees per tola, “under cost” in Pakistan, contrary to the Dubai market, reflecting that the Pakistani gold market is currently cheaper than the global.
