ISLAMABAD: The price of gold in Pakistan hit another record high on Saturday, as the country’s economic crisis shows no signs of abating.
According to details from the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the rate of gold (24 carats) climbed by Rs800 per tola and Rs686 per 10 grams, settling at Rs219,500 and Rs188,186, respectively.
This increase was driven by a $6 rise in the international market, with gold reaching $1,990 per ounce.
The steady uptrend in the price of gold in Pakistan reflects the weakened economic fundamentals as the rupee depreciates and inflation soars to record highs.
People prefer to buy gold
In such times, people prefer to buy the precious metal to protect themselves against inflation and currency depreciation.
The delay in the agreement with the International Monetary Fund (IMF) for a desperately needed economic bailout is another factor that has bolstered the demand for gold.
Without the IMF programme, Pakistan risks defaulting on its debts, which has negatively impacted the currency market.
The Pakistani rupee had fallen to an all-time low of Rs288.43 against the US dollar in the interbank market on April 11. While it has recovered since then, the US dollar continues to trade above Rs280.
Data shared by the APSGJA showed that the price of silver remained stable at Rs2,600 per tola and Rs2,229.08 per 10 grams, respectively.
As the economic crisis persists, the demand for gold is expected to remain strong, providing a safe haven for investors amidst the uncertainty. However, the long-term impact of the crisis on the country’s economy remains to be seen.
