Gold Reaches New High, Price Jumps Massively 2,350 Rupees Per Tola In Pakistan
- The price of gold stands at Rs141,650 per tola.
- The surge comes on the back of the continued depreciation of the Rupee.
- Cumulatively, gold has gained 9,300 rupees per tola since May 6.
KARACHI: Gold prices in Pakistan soared on Monday as the rupee weakened and concerns over inflation boosted demand for the safe-haven asset.
Gold prices on the local bullion market rose by 2,350 rupees per tola and 2,015 rupees per 10 grams today to 141,650 rupees and 121,442 rupees amid continued depreciation of the rupee by against the US dollar.
The precious commodity closed at Rs139,300 per tola and Rs119,427 per 10 grams on Saturday.
Significant fluctuations in the local currency coupled with speculation that the rupee will depreciate further added fuel to the already rising price of the yellow metal.
Read more: Another day, another record low; the rupee closes at 200.93 against the US dollar
Cumulatively, the price of the yellow metal has significantly gained 9,300 rupees per tola since the start of the bull run (May 6).
Gold is considered a hedge against soaring inflation and is often used as a safe store of value in times of political and economic uncertainty.
It should be noted that the precious commodity remains a safe haven against inflation (depreciation of the rupee and rising prices of essential commodities) and that people invest in gold to avoid the impact of currency devaluation local.
On the international market, the price of the yellow metal increased significantly by $15 an ounce to settle at $1,862.
Read more: How a boosted dollar overtakes several Asian currencies
The price of gold in Pakistan is around 1,500 rupees below cost compared to the market price in Dubai.
Meanwhile, domestic silver prices also gained Rs 20 per tola and Rs 17.14 per 10 grams to stand at Rs 1,590 and Rs 1,363.16 today.