After a two-day decline, the prices of gold were up again on Friday, with the precious metal scaling to a new record.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) rose by Rs1,100 per tola and Rs943 per 10 grams to reach Rs218,600 and Rs187,414, respectively.
Meanwhile, the price of silver also jumped to a record high.
Gold rates hit a record high of Rs218,300 on Tuesday as the rupee’s value declined. However, they fell for the last two days as the local currency recovered before rising by more than Rs1,000 again today.
The price of gold has risen sharply recently on the back of a weakened rupee and soaring inflation. During times of economic turmoil, people prefer to buy gold as a hedge against inflation. The price of the yellow metal also usually goes up during Ramadan.
Investors’ attention shifted to gold during the week as delays continued in reaching an agreement with the International Monetary Fund (IMF) for a desperately needed economic bailout.
The delay in the revival of the IMF programme negatively impacts the currency market which, in turn, bolsters the demand for gold.
The association also mentioned that the price of gold is Rs4,000 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 data shared by the association, the price of silver in the domestic market also reached a record high. The rate of silver rose by Rs20 per tola and Rs17.15 per 10 grams to reach Rs2,570 and Rs2,203.36, respectively.
The price of gold in the international market went up by $7 per ounce to reach $2,034.