Gold continues to glitter, touches new high of Rs138,700 in Pakistan

• Gold price gains Rs350 per tola.
• Price hike provides protection to investors from rupee depreciation.
• Silver prices in domestic market remain unchanged.

KARACHI: With a fresh increase of Rs350 per tola, gold price in Pakistan touched a new high on Friday, after witnessing a correction in the last session.

It hit a fresh all-time high of Rs138,700 per tola (11.66 grams) in Pakistan today, providing protection to investors from rupee depreciation.

According to the All Sindh Sarafa Jewellers Association (ASSJA), the price of gold per 10 grams rose by Rs300 to settle at Rs118,913.

Gold has emerged as a safe asset in these challenging times of the economic crisis. People were aggressively buying gold to protect their cash from deflation.

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The drop in the rupee value — which slumped to an all-time low of Rs200.14 against the US dollar in the interbank market — forced the gold trading body to revise up the bullion price significantly as Pakistan meets the local demand for the precious yellow metal through imports.

Earlier, commenting on the rising prices, a gold dealer had said that the metal remains a safe haven against inflation (rupee depreciation and increase in essential commodity prices) and people invest in gold to avoid the impact of the devaluation of the local currency.

He predicted that the gold price will continue to hover at a high level along with the depreciating rupee as the US dollar hits a double century against the Pakistani rupee.

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However, despite the wedding season, the demand in the market remains subdued due to a lack of purchasing power.

In the international market, the price of yellow metal recorded a significant increase by $13 per ounce to settle at $1,843.

Gold rates in Pakistan are around Rs1,500 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,570 and Rs1,346.02 today.