Gold shatters previous high, rises to Rs218,800 per tola

• Price of gold rises by Rs150 per tola and Rs129 per 10 grams.
• Gold rate in international market increases by $1 per ounce.
• Price of silver, which reached record high, remains stable.

Gold's upward trajectory in Pakistan continued unhindered on Thursday, as economic turmoil persisted and an agreement with the International Monetary Fund (IMF) continued to face delays.

The price of gold (24 carats) increased by Rs150 per tola and Rs129 per 10 grams to reach Rs218,800 and Rs187,586, respectively, according to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

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.

On Thursday, the rupee lost Re0.53 or 0.19% against the US dollar to close at Rs283.92 in the interbank market.

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.

The price of gold in the international market gained $1 to settle at $2,001 per ounce.

According to the association's data, the price of silver in the domestic market, which also reached a record high yesterday, remained unchanged. The rate of silver was Rs2,570 per tola and Rs2,203.36 per 10 grams, respectively.