Gold price increases by Rs3,050 per tola

F.P. Report

KARACHI: Amid a financial crisis in the country in the wake of massive devastations caused by flash floods, the gold price in Pakistan jumped by Rs3,050 per tola as unruly inflation and the intensifying economic crisis fed demand for the safe-haven metal.

According to the All Sindh Sarafa and Jewellers Association (ASSJA), the price per tola gold settled at Rs151,150. Meanwhile, the price rose by Rs2,615 per gram to settle at Rs129,587.

The yellow metal cumulatively gained Rs12,150 per tola since the last five sessions (Thursday-Tuesday).

The yellow metal had scaled record in July. Prices have since moved into a steadier range as the market digested a more hawkish outlook from the depreciating rupee and falling markets.

High inflation is in favour of precious metals and analysts believe that it is not going to go away anytime soon. They believe that constant fluctuations in rupee-dollar parity were limiting the gains in gold and could force the metal to trade sideways and be choppy.

Investors who used to pour money into foreign currencies, particularly the US dollar to avoid the impact of inflation, are now buying gold because the government and the central bank are trying to reduce the rupee-dollar parity.

Past practices suggest that people used to take aggressive positions in gold in inflationary days. In the international market, the price of yellow metal decreased by $3 per ounce to settle at $1,711.

Gold rates in Pakistan are around Rs4,000 below the cost compared to the rate in the Dubai market. Meanwhile, silver prices in the domestic market remained unchanged at Rs1,480 per tola and Rs1,268.86 per 10 grams.