KARACHI: Gold prices in Pakistan surged to a record high for a third straight session on Thursday as people took refuge in the safe-haven metal on mounting concerns that the nation’s economic conditions will deteriorate further.
Gold prices in the local market increased by Rs2,250 per tola. According to All Sindh Saraf Jewellers Association data, gold rates in the local market increased to Rs166,400 per tola.
Similarly, the 10-gram gold price increased by Rs1,929 to Rs142,661.
In the international market, gold rates increased by $10 to $1,784 per ounce.
Silver rates remained unchanged at Rs1,860 per tola. The price of 10-gram silver also stood the same at Rs1,594.65.
“People are looking at banks not clearing payments and fearing the worst,” said Khurram Schehzad, chief executive officer at Karachi-based Alpha Beta Core Solutions Pvt told Bloomberg newswire. The price jump is the result of aggressive buying by investors as another safe bet — buying dollars — is not widely available due to economic woes, he said.
The world’s fifth-most populous nation is dealing with a range of economic challenges, including a dollar shortage and a delay in the International Monetary Fund’s loan program for the country. Moody’s Investors Service and Fitch Ratings downgraded Pakistan deeper into junk territory in October after devastating floods jeopardized its fiscal stability.
The rally is more striking because the precious metal generally tracks global prices, which have come under pressure this year due to the US Federal Reserve’s aggressive tightening measures.
Gold demand in Pakistan jumped 34 percent to 13 tons between July and September from a year earlier, according to data from the World Gold Council. That was the most amount of gold purchased during a quarter in at least about three years.