Gold prices in Pakistan have surged for a second day, responding to the weakening of the rupee against the US dollar and an increase in global prices.
Today, the cost of 24K gold settled at Rs 234,500 per tola, marking a Rs 4,600 increase. Similarly, the 10 gram gold price rose by Rs 3944, reaching Rs 201,046.
The price of gold in Pakistan usually goes up when the US dollar gets stronger because Pakistan buys more gold than it sells.
The Pakistani rupee hit a new all time low against the US dollar, dropping 0.63% in the inter-bank market Today. Closing at 299.01, it experienced a Rs1.88 reduction, according to the State Bank of Pakistan.
Attributing the significant gold price hike to the rupee’s depreciation, Abdullah Abdul Razzak Chand, Vice President of the Society Jewellers Welfare Association, mentioned that investors are seeking refuge in gold due to growing concerns about the country’s worsening economic conditions.
Within just one week, gold prices in Pakistan have climbed by Rs 12,700 per tola. The metal had achieved a record peak of Rs 240,000 per tola on May 10, 2023, amidst political turmoil and a decline in the local currency’s value.
However, Chand noted that jewelry sales have remained sluggish due to increased gold prices and ongoing inflation.
On the international market, the price of gold rose by $10, reaching $1,901 per ounce Today (Tuesday, 22 August, 2023). In contrast, silver rates remained steady at Rs2,800 per tola.
