- Gold price jumps Rs1,300 per tola today.
- Price rises by a total Rs3,700 in the last five sessions.
- Dealer predicts price will continue to hover at a high level along with depreciating rupee.
KARACHI: The gold price in Pakistan soared to a record high at Rs135,700 per tola (11.66 grams) in Pakistan on Wednesday.
The surge was contrary to a downtrend in the commodity in global markets.
Gold has emerged as a safe asset in these challenging times of the economic crisis. People were aggressively buying gold to protect their cash from deflation.
According to the All Sindh Saraf Jewellers Association (ASSJA), the price of gold per tola surged by Rs1,300. Meanwhile, the price rose by Rs1,115 per 10 grams to settle at Rs116,341.
With the latest increase of Rs1,300 per tola today, the gold price has surged by a total of Rs3,700 in the last five sessions (Friday-Wednesday).
The drop in the rupee value — which slumped to an all-time low of Rs190.02 against the US dollar in the interbank market — forced the gold trading body to revise up the bullion price significantly as Pakistan meets the local demand for the precious yellow metal through imports.
Commenting on the rising prices, a gold dealer said that the metal remains a safe haven against inflation (rupee depreciation and increase in essential commodity prices) and people invest in gold to avoid the impact of the devaluation of the local currency.
He predicted that the gold price will continue to hover at a high level along with the depreciating rupee as the market sees the local currency crossing the critical 200-mark.
However, despite the wedding season, the demand in the market remains subdued due to a lack of purchasing power.
In the international market, the price of yellow metal recorded a decrease of $11 per ounce to settle at $1,852.
Gold rates in Pakistan are around Rs1,000 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,500 per tola and Rs1,286 per 10 grams today.