In line with a massive surge in the international market, the gold price jumped by Rs2,000 per tola in Pakistan, surpassing a major threshold of Rs170,000 per tola for the first time in the country.
Earlier, the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) released data showing the price of the precious commodity declined by Rs850 per tola and Rs729 per 10 gram — breaking its five-day-long gaining streak.
However, hours after the initial data was released the association clarified that the price has surged by a whopping Rs2,000 per tola and Rs1,714 per 10 gram.
Moreover, the new price settled at an all-time high of Rs170,800 per tola and Rs146,433 per 10 gram.
Rupee depreciation triggered a rally in the gold market which led to an increase of Rs7,750 per tola in the last six sessions.
Meanwhile, silver prices stayed above the key level of Rs1,900 per tola. The price remained unchanged at an all-time high level of Rs1,970 and Rs1,688.95.
The latest prices for local markets were determined to keep in view the prices at which trades took place among buyers and sellers.
Gold dealers complained that since gold prices were touching new peaks in the country, it had seized to exist as a lucrative business
Only investors are investing in gold here. Otherwise, artificial jewellery is being used in marriages and other ceremonies, they said.
A day earlier, speaking to Geo.tv, AA Gold Commodities Director Adnan Agar cited a shortage of dollars as a major reason behind rising gold prices in the local market.
“Investors want to invest in the dollar because of the rising difference between the open market and the interbank market rate, which is around Rs20-30; however, despite the significant difference dollar isn't available and people are concerned about the financial situation in Pakistan and chances of default,” he explained the reason behind sudden shift in investors focus.
He added that because of the speculations that the dollar can reach 350-400 against the rupee; investors were trying to invest in the precious commodity.
“However, due to its [dollar] shortage they have shifted their focus toward gold as the price of the yellow metal is also rising in the international market,” Agar maintained.
In the international market, gold price fell registered a decline of $7 per ounce to their highest levels in more than five months, settling at $1,817, after data showing a smaller-than-expected rise in US consumer prices cemented bets for a slowdown in rate hikes from the Federal Reserve.