Following a sharp decline in the value of the rupee relative to the dollar, the price of gold has risen to an all-time high as the nation struggles to obtain foreign financing. The price of gold (24 carats) has increased by Rs 3,100 per tola and Rs 2,656 per 10 grammes, according to data issued by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), settling at Rs 217,700 and Rs 186,643 respectively.
The gold rush coincides with a rise in weekly inflation as well as a decline in the rupee of 2.44 or 0.85 percent versus the US dollar in the interbank market. During the week that ended on April 6th, inflation soared by 0.92 percent week over week and 44.49 percent year over year. Ramadan has driven up the cost of sugar and poultry, and stockpiling has probably increased inflation.
Gold is frequently considered to be a hedge against inflation, rising in value when the value of the dollar falls. Additionally, Ramadan season, which increases demand for the precious metal, is currently in effect. As economic tensions mount and the International Monetary Fund (IMF) scrutinises external financing obligations from friendly nations before releasing rescue funds, investors’ focus has switched to gold. The currency market has been badly influenced by the programme’s postponement, which is increasing demand for gold.
The APSGJA further stated that when compared to the Dubai market, the price of gold in Pakistan is Rs5,000 per tola “undercost.” As a result, the price of gold in Pakistan is lower than it is globally. Silver prices have also increased to historic highs on the domestic market, rising by Rs. 30 per tola and Rs. 25.72 per 10 grammes to settle at Rs. 2,480 and Rs. 2,126.20, respectively.
The price of gold fell $6 per ounce on the world market, finishing at $2,002. Nevertheless, the local market is expected to become quite exciting as a result of gold’s increase in Pakistan.