ISLAMABAD: Gold prices in the local market surged for the sixth straight session amid the rupee’s consistent depreciation and surged by Rs3,500 per tola on Wednesday.
According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold increased to Rs238,000 from Rs234,500. Similarly, the gold price for 10 grams of 24-karat surged to Rs204,050 from Rs201,046, depicting a rise of Rs3,004. Similarly, the price of 10 grams of 22-karat gold increased to Rs187,000 from Rs184,292.
During the last three days, the price of one tola of 24-karat gold has increased by Rs10,200, as political uncertainty surrounding the general election is causing turbulence in local markets. This rise in local prices indicates a trend of increased demand for gold among local investors.
Market analysts attributed the surge in gold prices to the ongoing volatility in both the foreign exchange and financial markets. As traditional investment options display uncertainty, investors are turning to gold as a safe haven to safeguard their wealth. This heightened demand for the yellow metal has acted as a catalyst for the price escalation.
The exchange rate and international market prices play a direct and influential role in shaping the prices of precious metals like gold in Pakistan. The Pakistani rupee’s depreciation against the US dollar kept the gold price high in the country. The rupee depreciated by Rs7.27 against the US dollar last week, while it has plummeted by Rs3.23 during this week.-TLTP