Islamabad: The price of gold in Pakistan witnessed a sudden spike in demand as the price surged by nearly Rs10,000 per tola on Thursday.
Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) surged by Rs9,400 per tola and Rs8,058 per 10 grams to settle at Rs206,500 and Rs177,040, respectively.
In the last two sessions, the price of the precious metal shot up nearly Rs12,500 on a per tola basis.
The spike followed after the historic nosedive of the Pakistani rupee against the US dollar as the local currency plunged by nearly Rs19, or 6.66%, against the greenback to close at Rs285.09 against the dollar in the interbank market.
The State Bank of Pakistan (SBP) also raised the key policy rate by 300 bps, taking the interest rate to 20% in the country in a bid to control the historic inflation and to persuade the International Monetary Fund (IMF).
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.
