Monday Jun 20 2022

Gold scales new peak, price jumps by Rs1,450 per tola in Pakistan

Person wearing rubber gloves wiping clean bars of gold. — AFP
Person wearing rubber gloves wiping clean bars of gold. — AFP

  • Gold price in local bullion market reaches Rs147,250.
  • It gains Rs3,650 per tola during week that ended on June 18.
  • Silver prices in domestic market remain unchanged. 

KARACHI: Gold scaled to a new peak on Monday as the delay in the revival of the International Monetary Fund's (IMF) programme clouded the economic outlook and bolstered bullion’s safe-haven allure, though analysts said the rapid pace of gains could prompt some correction.

The precious commodity 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.

Gold prices in the local bullion market soared by Rs1,450 per tola and Rs1,243 per 10 grams today to reach an all-time high of Rs147,250 and Rs126,243 amid continuous depreciation of the rupee against the US dollar.

The precious commodity closed at a record high of Rs145,800 per tola and Rs125,000 per 10 grams on Saturday. Cumulatively, the yellow metal gained Rs3,650 per tola in Pakistan during the week ended June 18.

Significant fluctuations in the local currency coupled with speculations that the rupee will further depreciate added fuel to the already surging price of the yellow metal.

“Safe-haven buying can be seen in the market; however, local customers are staying on the sidelines due to lack of purchasing power,” a gold dealer told while describing the market scenario.

In the international market, the price of yellow metal remained unchanged at $1,840.

Gold rates in Pakistan are around Rs3,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,560 and Rs1,337.44 today.