KARACHI: On Thursday, the gold rate in Pakistan soared, owing in part to a worldwide rise in commodities prices and in part to the rupee’s devaluation.
Today, the gold rate in the local bullion market increased by Rs2,800 per tola and Rs2,400 per gram, respectively, to Rs120,200 per tola and Rs103,052 per gram.
The precious metal had finished the previous day at Rs117,400 per tola and Rs100,652 per gram.
The cause for the large increase in local bullion prices, according to AA Commodities Director Adnan Agar, is growing commodity prices in the worldwide market and a small devaluation in the rupee.
Furthermore, the high rate of inflation has severely harmed people’s buying power, resulting in a reduction in local demand for the valuable item, notwithstanding the wedding season.
Agar predicts that the price of gold will continue to rise in the future.
Gold is drawing safe-haven investment once again.
Because the government and the central bank have tightened laws governing the purchase of foreign currencies on the open market, investors who used to pump money into other currencies, notably the US dollar, to escape the effect of inflation are now purchasing gold.