Wednesday May 22, 2024

Gold inches closer to all-time high

The price of gold (24 carats) rises by Rs1,350 per tola

By Business Desk
April 20, 2023
An undated file photo of gold jewellery on display at a store. — AFP
An undated file photo of gold jewellery on display at a store. — AFP

The rupee's slight recovery caused a jump in the gold price in Pakistan on Thursday, taking the precious metal's value close to a record high it reached last week.

The price of gold (24 carats) increased by Rs1,350 per tola and Rs1,157 per 10 grams to reach Rs218,200 and Rs187,071, respectively, according to data from the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The rupee moved upward against the US dollar, appreciating 0.15% or Re0.42, to 283.47 in the interbank market, according to the State Bank of Pakistan (SBP).

The yellow metal had reached a record high of Rs218,600 per tola last week. It then dropped to Rs216,000 per tola on April 15 as its rate declined in the international market. It was again on the rise as the current week began.

The price of gold increased by $26 today to settle at $2,000 per ounce in the international market, which also affected the domestic market rate.

The increased demand for the precious metal and the resulting rise in its value can be attributed to the economic crisis prevailing in the country. During times of economic turmoil, people prefer to buy gold, which is considered to be a hedge against inflation and the local currency's declining value.

Moreover, gold was the top-performing asset in 2022, according to a report by Topline Securities.

Data shared by the association showed that the price of silver in the domestic market remained unchanged at Rs2,530 per tola and Rs2,170 per 10 grams, respectively.