Friday April 19, 2024

Gold soars to new record high

The rate of gold rises to Rs219,500 per tola

By Business Desk
April 29, 2023
This undated file photo shows processed gold bars. — AFP
This undated file photo shows processed gold bars. — AFP

As the international rate went up again and the country's economic crisis persisted, the price of gold in the domestic market rose to a new record high on Saturday.

The rate of gold (24 carats) increased by Rs800 per tola and Rs686 per 10 grams to settle at Rs219,500 and Rs188,186, respectively, according to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). 

The rate of gold in the international market rose by $6 to reach $1,990 per ounce. Consequently, the price of the precious metal also rose in Pakistan. 

The gold rate has been on a steady uptrend in Pakistan, as economic fundamentals weakened, the rupee depreciated and inflation soared to record highs. During such times, people prefer to buy the precious metal to protect themselves against inflation and currency depreciation.

The rupee had fallen to an all-time low of Rs288.43 against the US dollar in the interbank market on April 11. While it has recovered since then, the US dollar continues to trade above Rs280.

Another reason for the increased gold demand is the delay in an agreement with the IMF for a desperately needed economic bailout, without which the country risks default.

The delay in the revival of the IMF programme negatively impacts the currency market which, in turn, bolsters the demand for gold.

Data shared by the association showed that the price of silver remained stable at Rs2,600 per tola and Rs2,229.08 per 10 grams, respectively.