As Pakistan’s rupee continues to break records and explore new depths, gold hits new heights every day.
In line with the trend in recent sessions, the per tola (11.66 grams) gold price in Pakistan reached a new historic record of Rs138,100 on Tuesday, providing protection to investors from rupee depreciation.
According to the All Sindh Sarafa Jewellers Association (ASSJA), the price of gold per tola went up by Rs1500. In the meantime, the price increased from Rs1,286 per 10 grams to Rs118,398.
With the latest increase of Rs1500 per tola today, the price of gold jumped by a total of Rs 2700 during the last three sessions (Saturday-Tuesday).
Gold emerged as a safe asset during these tough economic times. People were aggressively purchasing gold to protect their cash against deflation.
The decline of the rupee’s value — which dropped to a historical low of Rs 195.74 against the US dollar in the interbank market — forced the gold trading agency to raise the price of bullion significantly, as Pakistan responds to local demand for the precious yellow metal through imports.
In the international market, the price also of yellow metal reversed the bearish trend recording a significant increase of $34 per ounce to settle at $1,833.
The gold rates in Pakistan are about Rs1,000 less than the cost compared to the rate in the Dubai market.