KARACHI: Due to the collapse of the rupee and record-high inflation in the United States, gold prices in Pakistan increased by Rs3,300 per tola, in line with worldwide markets.
Gold Rate in the local bullion market increased by Rs3,300 per tola and Rs2,829 per gram Wednesday, reaching Rs129,100 per tola and Rs110,682 per gram, respectively.
The precious metal had finished the previous day at Rs125,800 per tola and Rs107,853 per gram.
A persistent price rise has harmed the already low demand for gold in the local market.
“We do notice some seasonal demand owing to wedding season,” he added, “but customers’ lack of buying power has driven them into fake jewelry.”
The trader, who was speaking about the yellow metal’s future prospects, said that the price would continue to rise in the future.
According to the All Sindh Saraf and Jewellers Association, the yellow metal has gained Rs11,700 per tola in the previous seven sessions, with a new rise of Rs3,300 per tola (ASSJA).
Concerns about uncertain economic circumstances have prompted a flight from hazardous commodities to safer ones, prompting the latest surge.
Due to inflation fears, investors are establishing aggressive positions in gold.
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.
Gold surged $38 on the international market, settling at $1,863, close to the previous session’s almost five-month high, as a huge spike in US inflation — which hit a 30-year high — sent investors to the safety of metal.
Meanwhile, silver prices in the domestic market rose by Rs40 per tola and Rs34.30 per gram to Rs1,480 per tola and Rs1,268.86 per gram, respectively.