As the foreign rate goes up, Pakistan’s gold prices go up.
After going down for two days, the price of gold in Pakistan went back up on Saturday, just like it did on the foreign market.
The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) said that the price of gold (24 carats) went up by Rs3,200 per tola and Rs2,743 per 10 grams to Rs234,000 and Rs200,617, respectively.
The price of gold on the foreign market ended up at $2,010 per ounce, up $5.
Analysts say that the international rate will continue to change this month because of uncertainty about whether or not the US debt limit will be raised.
The price of the yellow metal hit a record high of Rs240,000 per tola on May 10. This was because the arrest of Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan had led to more political unrest and violence.
Gold earned Rs7,100 per tola this week as a whole.
Before May 10, gold prices in Pakistan were already hitting new highs almost every other day. This was because of economic and political unrest, high inflation, and a weakening currency. In times like these, people prefer to buy gold as a safe investment and a way to protect themselves.
Even after several months of talks, the government has not signed a staff-level agreement with the International Monetary Fund (IMF) for the release of a vital economic bailout. International agencies have warned that Pakistan could default on its loans when the current loan program ends.
The country’s foreign exchange stocks are so low that they can’t even cover one month’s worth of imports. On May 11, the rupee hit a new low of Rs300 per US dollar.
Also, inflation has hit a record high and is the highest in South Asia. After the PTI chairman was arrested, violent protests went on for days.
According to information released by the association today, the price of silver went up by Rs100 per tola and Rs85.74 per 10 grams to Rs2,900 and Rs2,486.28, respectively.