Pakistan’s gold price goes up to an all-time high.
After the rupee fell to a new low against the US dollar on the exchange market, the price of gold in Pakistan jumped to an all-time high and went above Rs215,000 per tola.
The rise was in line with the movement of the rupee, which fell to an all-time low of Rs287.85 against the US dollar on the exchange market, and with a general trend of the markets going up around the world.
All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) said that the price of 24k gold went up by Rs2,500 per tola and Rs2,142 per 10 grams to Rs217,000 and Rs186,042 respectively.
Gold is often seen as a way to protect yourself from inflation because its worth goes up as the purchasing power of the dollar goes down.
Pakistan’s monthly inflation in March was much higher than expected, reaching almost an all-time high of 35.4% from a year earlier. People are feeling more pain from some of the fastest rising consumer prices, and their budgets are getting tighter as the cost of living continues to rise faster than average wages.
The precious metal earned Rs8,700 per tola over the three sessions as a whole. (Monday-Wednesday).
During the week, investors started paying more attention to the precious commodity because economic tensions are still rising and the International Monetary Fund (IMF) is reviewing external financing pledges from friendly countries before it releases bailout funds.
The delay in bringing the program back has hurt the money market, which is making more people want to buy gold.
The rupee-dollar parity affects the price of gold because almost all of the country’s gold needs are met by imports, and sellers set prices in the country based on the price of gold in other countries.
Before changing the price of the metal into rupees, jewelers buy it with the US dollar and the UAE dirham.
Prices in the local gold market also went up because of a rise in demand during the holiday season.
The association also said that the price of gold in Pakistan is “undercost” by Rs10,000 per tola compared to the Dubai market, which shows that the gold market in Pakistan is currently cheaper than the world market.
On the home market, the price of silver stayed the same at Rs2,450 per tola and Rs2,100.48 per 10 grams. On the world market, the price of an ounce of gold went up $41 to $2,023.