KARACHI: After a day’s break, gold prices continued to make and break records in Pakistan as per tola price surpassed the Rs180,000 key level for the first time in the history of Pakistan.
The price of gold surged by Rs1,850 per tola and Rs1,586 per 10 grams to settle at an all-time high of Rs180,650 and Rs154,878, respectively, the data released by All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.
A day earlier, in a surprise move, the association did not release the gold rates citing uncertainty as a reason behind its decision.
APSGJA President Haji Haroon Rasheed Chand, in a public message, confirmed the bullion rates were stopped because of the “uncertain market situation”.
Gold prices have been rising for the last many days and have cumulatively gained Rs19,450 or 12.06% per tola since December 1, raising concerns about whether the soaring price is sustainable or constitutes an unsustainable bubble.
Chand, however, blamed speculators for taking gold prices to exorbitant rates. He said that contrary to the claims there is very less demand in the local market.
It should be noted that the APSGJA notifies the gold rates to the market every day after determining the price by keeping in view its rates in world markets, the rupee-dollar exchange rate, and demand and supply in domestic markets.
Analysts believe that the unavailability of the dollar in Pakistan and the widening difference between interbank and open market exchange rates triggered the recent price hike; however, grey markets of the precious commodity have also added fuel to the speculations.
Experts anticipated that the price of gold may rise to Rs200,000 per tola due to the rupee devaluation against the US dollar under the current cycle.
Meanwhile, silver prices also registered gains and rose to an all-time high of Rs2,100 per tola and Rs1,800.41 per 10 grams after an increase of Rs50 and Rs42.87, respectively.
In the international market, gold prices consolidated in a narrow range as cautious investors awaited US economic data releases due later in the day that may influence the Federal Reserve’s interest-rate raising timeline. Prices settled at $1,815 after an increase of $7 per ounce.
