KARACHI: Gold price in Pakistan jumped over Rs1,700 per tola on Monday in line with the international rise in the international market
Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold surged by Rs1,750 per tola and Rs1,500 per tola to settle at Rs161,300 and Rs138,288, respectively.
Despite a surprise interest rate hike by the State Bank of Pakistan (SBP), the price of gold surged as under pressure US dollar shifted investors' focus toward the safe-haven asset.
The yellow metal is considered a hedge against higher inflation and a safe store of value in times of economic and political uncertainty.
However, higher interest rates increase the opportunity cost of holding the non-yielding metal which restricted the gains today.
Gold price in the local market is heading towards its all-time high of Rs162,500 per tola recorded on July 28.
In the international market, the price of the yellow metal rose by $4 per ounce settling at $1,759 — rose more than a one-week high — helped by a softer US dollar and some safe-haven demand amid protests in several Chinese cities over the country's strict COVID-19 curbs.
The precious commodity's rates in Pakistan are around Rs2,000 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,710 per tola and Rs1,466.04 per 10 grams, respectively.