Islamabad: The price of gold in Pakistan witnessed a slight increase on Tuesday, breaking the losing streak against the Pakistani rupee.
Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) went up by Rs300 per tola and Rs257 per 10 grams to settle at Rs194,400 and Rs166,666, respectively.
It can be a small step towards another big rise in gold prices because the State Bank of Pakistan’s Monetary Policy Committee (MPC) is set to meet, before the original day, on March 2 to decide the key policy rate.
The International Monetary Fund (IMF), with whom the Pakistani government has been engaged to unlock the stalled ninth review of a loan facility, has demanded at least a 2% hike in interest rate.
Periods of high inflation often coincide with a hike in interest rates and general economic uncertainty. As a result, gold is considered a safe haven and it is believed that the higher the demand, the greater the price.
