The gold rate in Pakistan surged by over Rs 3,000 per tola on Saturday, signaling another potential historic high as the international market witnessed a significant increase in the cost of the yellow metal.
According to data from the All Pakistan Sarafa Gems and Jewellers Association, the price of gold rose by Rs 3,100 per tola and Rs 2,658 per 10 grams, reaching Rs 248,100 and Rs 212,706, respectively.
This surge brings the per-tola gold price in Pakistan close to an all-time high of Rs 252,200 recorded on April 20, 2024. During the week ending May 11, 2024, gold gained Rs 5,500 per tola.
The association also highlighted that gold in Pakistan is currently priced at Rs 4,000 per tola lower than the international market, indicating that the local market is relatively cheaper.
Gold, known as a hedge against inflation, experienced losses in the local market due to lower-than-expected inflation data, reducing expectations of a rate cut. Additionally, a stable monetary policy dampened investor sentiment.
Similarly, in the international market, gold prices rose by $30 per ounce, reaching $2,414. Bullion prices hit a record high of $2,431.29 on April 12.
Surprisingly, silver prices in the local market also saw an increase, settling at Rs 2,850 per tola and Rs 2,443.41 per 10 grams.
The determination of gold prices in Pakistan is influenced by global prices, the rupee-dollar exchange rate, and domestic demand and supply dynamics. The latest prices reflect trading activity among buyers and sellers.
Gold prices in Pakistan have been volatile recently due to political and economic uncertainty and high inflation. Many individuals view gold as a safe investment and a hedge against such uncertainties.
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