Pakistan’s gold price goes up to another all-time high.
Gold prices went up to another all-time high in Pakistan, where the economy is still in bad shape and a bailout program from the International Monetary Fund (IMF) is stuck.
According to information from the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) went up by Rs1,400 per tola and Rs1,200 per 10 grams to Rs226,900 and Rs194,530, respectively.
Gold’s price went up because its value on the foreign market went up by $5 to settle at $2,022 per ounce, which also contributed to the rise.
Gold prices went up a little bit as the dollar got weaker and economic risks remained high. Investors were also getting ready for US inflation data so they could figure out the Federal Reserve’s policy direction.
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.
During the week ending May 4, prices of chicken and wheat flour went up, making the weekly inflation rate hit an all-time high of 48.35% year-on-year (YoY). This is the highest it has ever been.
Also, it doesn’t look like Pakistan will get the important loan payment from the IMF any time soon, since the country’s loan program won’t be on the agenda of the lender’s Executive Board until May 17.
Since February, Pakistan and the IMF have been talking about fiscal policy steps in the review, with the goal of getting a $1.1 billion payment due in November from a $6.5 billion program agreed to in 2019 that had been put on hold.
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 also showed that the price of silver hit a record high when it went up by Rs30 per tola and Rs25.72 per 10 grams to Rs2,900 and Rs2,486.28, respectively.