KARACHI: A day after witnessing a major drop, the price of gold rose once again in Pakistan on Monday in line with the rupee’s depreciation.
According to data shared by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) jumped by Rs1,100 per tola and Rs943 per 10 grams to reach Rs217,100 and Rs186,128, respectively.
The increase in the precious metal’s value came as the rupee depreciated again, falling Re0.31 or 0.11% against the US dollar in the interbank market.
It was also in line with the rate of gold in the international market which increased by $5 to settle at 2,008 per ounce.
The association also mentioned that the price of gold is Rs5,000 per tola “undercost” in Pakistan, as compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global.
According to the Forex Association of Pakistan (FAP), the rupee witnessed 30 paisas devaluation against the US dollar in the interbank trading on Monday and closed at Rs284.70 against the previous day’s closing of Rs 284.40.
The buying and selling rates of Dollars in the open market were recorded at Rs287.5 and Rs290, respectively, APP reported citing FAP.
Last week, the precious metal had reached an all-time high of Rs218,600 per tola in Pakistan as the country’s economic crisis persisted and inflation remained high.
People tend to buy gold during economic turmoil as it is considered a reliable asset, and a hedge against inflation and the rupee’s decline in value. Its prices also rise in Ramadan due to seasonal demand. According to a report by Topline Securities, gold outperformed all other assets in 2022.
Meanwhile, the price of silver — which had also reached a record high in the domestic market last week — declined by Rs40 per tola and Rs33.36 per 10 grams to reach Rs2,530 and Rs2,170, respectively.
