Gold prices hit a new high of Rs218,600 per tola, which is a record.
Gold prices in Pakistan hit an all-time high on Friday, just a few days after the price of the valuable metal went over Rs218,000 for the first time.
Data from the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) went up by Rs1,100 per tola and Rs943 per 10 grams to Rs218,600 and Rs187,414, respectively.
As the value of the rupee went down on Tuesday, the price of gold hit a new high of Rs218,300. But they went down for the last two days as the local currency got stronger. Today, though, they went up by more than Rs1,000 again.
Separately, the rupee won Rs0.51, or 0.18%, against the US dollar on the interbank market, while inflation rose 44.61% year-on-year in the week ending April 13.
Due to a weakening dollar and rising inflation, the price of gold has gone up sharply in recent months. People tend to buy gold as a hedge against inflation when the economy is in trouble. During Ramadan, the price of the yellow metal also tends to go up.
During the week, investors turned their attention to gold as negotiations with the International Monetary Fund (IMF) for a badly needed economic bailout dragged on.
The delay in starting up the IMF program hurts the exchange market, which in turn makes more people want to buy gold.
The association also said that the price of gold in Pakistan is “undercost” by Rs4,000 per tola compared to the Dubai market, which shows that the gold market in Pakistan is currently cheaper than the world market.
The association’s records show that the price of silver on the domestic market also hit a record high. The price of silver went up by Rs20 per tola and Rs17.15 per 10 grams, making it Rs2,570 per tola and Rs2,203.36 per 10 grams.
On the foreign market, the price of an ounce of gold went up by $7 to $2,034.