A historic event occurred on Tuesday when the price of gold reached an all-time peak in Pakistan, reaching Rs214,500 per tola. (11.66 grammes). The reasons for this increase were numerous, with the upward tendency of the world markets and the rupee’s historic low value relative to the US dollar in interbank trade both contributing.
The rise in gold prices was a direct result of the rupee’s collapse to a previously unheard-of low of Rs287.29 against the US dollar in the interbank market. As dealers rushed to adapt to the local bullion market’s new reality, the ripple effect was felt throughout the nation.
According to the All-Pakistan Sarafa Gems and Jewelers Association, the price of 24-carat gold reached an all-time high on Tuesday, reaching Rs214,500 per tola and Rs183,900 per 10 grammes in a surge that made news throughout Pakistan. (APSGJA). It was an obvious illustration of both the upward tendency in international markets and the movement of the rupee, which had fallen to a historic low of Rs287.29 against the US dollar in the interbank market.
People in Pakistan began turning to gold as consumer price inflation hit a virtually all-time high of 35.4% in March, putting pressure on their budgets. This priceless asset has long been regarded as a hedge against inflation, rising in value as the worth of the dollar falls. Gold rose Rs5,200 per tola over the two days from Monday to Tuesday.
The International Monetary Fund (IMF) has been scrutinizing the external financing promises from friendly nations before releasing bailout funds, which has led to an increase in economic tensions.
The program’s delayed revival had a bad effect on the financial market, which in turn increased demand for gold. This valuable commodity attracted investors’ notice as a haven during these turbulent times.