Gold glitters, price rises by Rs1,250 per tola in Pakistan

• Gold price settles at Rs143,250 per tola.
• Cumulatively, gold price rose by Rs5,950 per tola since June 2.
• Silver prices in the domestic market remain unchanged.

KARACHI: Gold extended its rally towards a record high on Tuesday, after investors made a beeline for the traditional safe-haven metal on mounting fears around the inflation, with eyes on the upcoming federal budget for the next fiscal year 2022-23.

Meanwhile, worries over the continuous depreciation of the Pakistani rupee against the US dollar and further monetary policy tightening kept the price of the yellow metal near all-time highs.

According to rates issued by the All Sindh Sarafa Association, the gold price settled at Rs143,250 per tola. The price jumped by Rs1,072 per 10-gram to close at Rs122,814.

Read more: Rupee plummets to all-time low of 202.83 against US dollar in interbank market

Cumulatively, the price of the yellow metal significantly gained Rs5,950 per tola since the start of the bullish spell (June 2).

The precious commodity scaled to an all-time high of Rs143,600 per tola on May 24.

Gold is considered a hedge against soaring inflation and is often used as a safe store of value during times of political and economic uncertainty.

The precious commodity 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.

Read more: Inflation clocks in at 13.8% in May

In the international market, the price of yellow metal decreased by $5 per ounce to settle at $1,849.

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