Gold in Pakistan hits a new record high.
The price of gold set a new record on Saturday, the same day that weekly inflation hit an all-time high.
According to information from the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) went up by Rs500 per tola and Rs429 per 10 grams to Rs225,500 and Rs193,330, respectively.
Even though the price of gold on the foreign market fell by $19 to settle at $2,017 per ounce, the price of gold went up.
In Pakistan, the gold rate has been steadily going up as the economy has gotten worse, the rupee has lost value, and inflation has reached record highs. People tend to buy gold during these times to protect themselves from inflation and a weakening of their currency.
The annual rate of inflation in April was 36.4%, which was a record high. It means that prices in Pakistan are going up the fastest in Asia, even faster than in Sri Lanka, where inflation was 35.3% the month before.
Separately, government data showed that weekly inflation hit a new high of 48.35% year-on-year during the week ending May 4. This was because the prices of chicken and wheat flour kept going up.
Meanwhile, talks between the government and the International Monetary Fund (IMF) about a vital economic bailout have been stuck for months.
The delay in starting up the IMF program hurts the exchange market, which in turn makes more people want to buy gold.
The association’s data showed that the price of silver went down a little from yesterday, when it hit a record high. The price of silver per tola and per 10 grams went down by Rs80 and Rs68.58, respectively, to Rs2,870 and Rs2,460.56.