Gold hits all-time high

KARACHI: Gold prices in the country surged to all-time high on Wednesday as investors moved from deflating local currency to the precious metal, dealers said.

According to data released by All Sindh Saraf Jewelers Association (ASSJA), gold prices in the local market increased by Rs800 per tola to Rs132,800 per tola.

“Gold prices rose in the local market because of weakening of the rupee as compared to the US dollar,” Muhammad Shafi Khan, a senior goldsmith said.

“Political uncertainty has caused panic everywhere and people are relocating their capital to buying gold, as some regulations have made it difficult to buy dollars for everyone,” he added.

Previously, gold prices had touched all-time in the local market during the pandemic in 2020, when the international gold market had touched an all-time high of around $2,063 per ounce.

International prices are not at that par, but the local political situation and currency devaluation have pushed investors to find a safe haven for their capital.

“The dollar is touching 187-mark and people are buying it on a larger scale.”

The price of 10-gram gold also rose by Rs686 to Rs113,855. In the international market, gold rates decreased by $2 to $1,926 per ounce.

Silver rates remained unchanged at Rs1,520 per tola. The price of 10-gram silver also stood the same at Rs1,303.15.

Local jewelers said gold prices in the local market remained lower by Rs5,000 per tola as compared with rates in the Dubai market.

Pakistani currency has been witnessing a record low on every day amid political uncertainty and plenty of economic reasons such as lingering talks with International Monetary Fund (IMF), depleting forex reserves, and increasing commodity prices.

Investors, being worried about the pace of the local currency fall, are looking to get benefits from the strengthening precious metal.