Gold price in Pakistan rises by Rs1,500 per tola

• Price of gold in the local bullion market gains Rs1,500 per tola to settle at Rs124,800 per tola.
• Fresh increase comes on the back of concerns regarding uncertain economic conditions.
• Increase in prices is negatively affecting local demand.

KARACHI: The price of gold continued to register gains on Tuesday in the domestic market as a weakening rupee made bullion expensive for holders of the local currency.

Gold prices in the local bullion market gained Rs1,500 per tola and Rs1,286 per 10 grams to settle at Rs124,800 per tola and Rs106,996 per 10 grams.

A day earlier, the precious commodity closed at Rs123,300 per tola and Rs105,710 per 10 grams.

The fresh increase comes on the back of concerns regarding uncertain economic conditions which have sparked a flight from risky commodities towards safer ones.

Gold is considered one of the safest investments, hence, its price is skyrocketing as investment is pouring in at a rapid pace.

As the dollar continues to strengthen day after day, investors' confidence in the currency has tumbled and they have diverted their investment to gold.

Earlier, speaking to Geo.tv, AA Commodities Director Adnan Agar had said: "Inflation is always a favourable scenario for gold.”

Local dealers had also said that the return of inflationary days in Pakistan and around the world has once again invited investors’ attention towards the yellow metal as at such a time, safer commodities become attractive.

However, the increase in prices is negatively affecting the local demand.

The price of gold in the international market increased by $8, settling at $1,825, due to persistent inflation concerns after key central banks indicated interest rates would remain low in the near term.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,440 per tola and Rs1,234.56 per 10 grams.