Gold price in Pakistan gains Rs1,000 per tola amid inflation concerns

• Gold price in the local bullion market gains Rs1,000 per tola and Rs857 per 10 grams to settle at Rs125,800 and Rs107,853.
• The yellow metal has recorded an increase of Rs8,400 per tola in the last six sessions.
• Investors are taking aggressive positions in gold due to concerns regarding inflation.

KARACHI: Gold prices rose on Wednesday, as rising inflation fears dulled risk appetite and boosted demand for the safe-haven metal.

Gold price in the local bullion market gained Rs1,000 per tola and Rs857 per 10 grams to settle at Rs125,800 per tola and Rs107,853 per 10 grams.

A day earlier, the precious commodity closed at Rs124,800 per tola and Rs106,996 per 10 grams.

With a fresh increase of Rs1,000 per tola, the yellow metal has recorded an increase of Rs8,400 per tola during the last six sessions, according to All Sindh Saraf and Jewellers Association (ASSJA).

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

Investors are taking aggressive positions on gold due to concerns regarding inflation.

Investors who used to pour money into foreign currencies, particularly in the US dollar to avoid the impact of inflation, are now buying gold because the government and the central bank have tightened regulations pertaining to the purchase of foreign currencies in the open market.

The price of gold in the international market remained unchanged $1,825.

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