The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) has reported that the 24-carat gold prices in Pakistan has reached an all-time high, exceeding the Rs218,000 mark. This surge in gold prices is attributed to the local currency’s historic low against the US dollar, which has left investors uncertain about the market.
The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) data shows that the price of gold has risen by Rs600 per tola and Rs514 per 10 grams, settling at Rs218,300 and Rs187,157, respectively.
The rise in the value of gold was consistent with the fall of the rupee, which dropped 1.34 or 0.46% to 288.43 against the US dollar in the interbank market. Additionally, there was an uptick in the weekly inflation.
Earlier in March 2023, gold rates in Pakistan for 24K per tola is Rs. 208,200, 22K Gold rate is 163623 per 10 gram, 21K Gold rate is 182,222 per tola and 18k gold rate is 133,874 per 10 gram.
Inflation for the week ending on April 6 showed a significant increase of 0.92% compared to the previous week and a significant year-on-year increase of 44.49%. The rise in prices of sugar and chicken due to Holy Ramadan and possible hoarding were the main contributors to this surge.
Gold is frequently recognized as a safeguard against inflation, as its value tends to rise when the purchasing power of the dollar falls, and also because of the increased demand during the holy month of Ramadan.
During the week, investors’ focus turned to a precious commodity as economic tensions increased due to the International Monetary Fund (IMF) evaluating external financing agreements with friendly countries before providing bailout funds.
The delay in the revival of the programme negatively impacted the currency market which in turn is bolstering demand for gold.
The association stated that the cost of gold per tola in Pakistan is Rs5,000 lower than the cost in the Dubai market, indicating that the Pakistani gold market is currently more affordable compared to the international market.
Meanwhile, silver prices in the domestic market also jumped to historic highs after an increase of Rs40 per tola and Rs34.30 per 10 grams to settle at Rs2,520 and Rs2,160.5, respectively.
In the international market, gold price dropped $1 per ounce to settle at $2,001.
Stay tuned to Explore It Beyond for more updated about fluctuation in gold prices in Pakistan!
