KARACHI: Gold prices in the local market have reached to a historic high on the back of a continuous instability in the rupee's value against the US dollar and an increase of the precious metal's rates in the international market, dealers said on Monday.
According to a data released by All Sindh Saraf Jewelers Association, gold rates in the local market moved up by Rs700 on Monday to reach an all-time high of Rs164,000 per tola. Similarly, 10-gram gold price also increased by Rs601 to Rs140,633.
In the international market, gold rates increased by around 9 percent or $146 to $1,799 per ounce on December 2, 2022, from $1,653 per ounce on November 1, 2022.
“Gold prices reached an all-time high in Pakistan, as rupee rates are unstable along with an increase in international gold prices,” a senior goldsmith Muhammad Shafi Khan told The News.
In the international market, gold had touched $1,818 per ounce and then returned. “International prices are also going upwards besides instability in the Pak rupee, which is causing an increase in the local prices,” he said. The goldsmith mentioned that US unemployment reports and a decrease in interest rates were the reason behind an increase in international prices.
Previously, bank interest rates were increasing in the US market, and prices of gold had come down, as investors were taking their money from commodities and stocks and investing in the
banks.
“Now, the US has controlled the interest rates. Thus, the investors are taking money back from the banks and are again investing in commodities and stocks. Therefore, gold and silver prices are also increasing in the international market.”
He added that the dollar was appreciating in Pakistan and, “If such situations remain persistent, prices will continue increasing in the local market,” he said. The dealer said since gold prices were touching to all-time-high levels in the country, it had seized to exist as a lucrative business in the country.
“Only investors are investing in the gold here. Otherwise, artificial jewellery is being used in marriages and other ceremonies.” Silver rates remained unchanged at Rs1,780 per tola on Monday. The price of 10-gram silver also stood the same at Rs1,543.13.
In the international market, gold rates decreased by $4 to $1,794 per ounce. Local jewellers claimed that gold prices in the local market sremained below Rs2,000 per tola as compared with the rates in Dubai gold market.