As it continued to rise on Wednesday, the price of gold surpassed another all-time high. In Pakistan, the price of valuable yellow metal is currently greater than on the international market.
According to the All-Pakistan Sarafa Gems and Jewellers Association, gold prices climbed by Rs900 per tola and Rs772 per 10 grammes, respectively (APSGJA). Currently, these costs are Rs 188,600 and Rs 161,694, respectively.
Traders anticipate that the price of gold will reach Rs200,000 a tola due to the current cycle’s decline of the Pakistani rupee versus the US dollar and a lack of US dollars.
Market analysts predict that Pakistan’s gold price bubble would burst as a result of the $6–$8 billion inflow from multilateral and bilateral creditors.
However, the cost of a tola of silver remained constant at Rs2,150. At Rs1,843.27, the price of 10-gramme silver remained practically steady.
Due to a lower rupee and growing expectations that the Federal Reserve will raise interest rates gradually rather than abruptly, gold prices rose by more than 1% on Wednesday, reaching their highest level since mid-June.
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Following the release of Pakistan’s December inflation figures on Monday, the markets have now factored in the probability that the central bank may increase interest rates by a full 50-100 basis points on January 23.
Even though gold is seen as a secure investment during difficult times and a hedge against greater inflation, higher interest rates raise the opportunity cost of possessing non-yielding metal.
