Gold hits record Rs200,000/tola on weak rupee

KARACHI: Gold prices in the local market surpassed Rs200,000 per tola mark for a first in Pakistan on

Friday, as investors have increasingly turned to the precious metal amid massive devaluation of the rupee.

According to All Sindh Saraf Jewellers Association, gold rates increased by Rs7,000 to Rs202,500 per tola in the local market.

The price of 10-gram gold also rose by Rs6,000 to Rs173,610. In the international market, however, gold rates decreased by $6 to $1,930 per ounce.

“Instability of the rupee and fast-depleting foreign exchange reserves have contributed to a massive increase in gold prices, as investors are moving towards the precious metal market,” a goldsmith said.

He added that there was a huge demand for raw gold bars, which pushed the prices to break all-time high record every next day.

A senior goldsmith stated that despite the rupee hit a life-time high, the demand was only for raw gold bars and the workers were not getting any work amid lower jewerllery orders even in the marriage season.

“Earlier, traders used to get orders for jewellery and the makers would work in two shifts in a day. Now, the workers aren’t having enough work even during the day time, and many have already lost their jobs.”

He further said that gold rates used to stay around the international market, adding, “Nowadays, there is a fluctuation of thousands of rupees in the local and the international market.”

Silver rates also increased by Rs50 to an all-time high price of Rs2,200 per tola.

The price of 10-gram silver also rose by Rs42.86 to Rs1,886.14.

Pakistan, the world’s fifth-most populous nation, is dealing with a range of economic challenges, including a shortage of dollars and a delay in the International Monetary Fund’s loan programme for the country. Investors are turning to gold in search of a safe heaven.

Gold prices are likely to maintain an upward trend in the country as the rupee may decline further in next few days.