Islamabad: With the Pakistani rupee losing ground against the US dollar, the price of gold surged by more than 1% on Wednesday.
Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) surged by Rs2,700 per tola and Rs2,315 per 10 grams, to settle at Rs197,100 and Rs168,981, respectively.
In the last two sessions, the price of the precious metal gained Rs3,000 per tola, recovering more than what it lost during last week.
Meanwhile, silver prices in the domestic market remained unchanged at Rs2,080 per tola and Rs1,783.26 per 10 grams, respectively.
Analysts also attribute the spike in prices to the policy rate hike of 2% that is being anticipated in the Monetary Policy Committee (MPC) meeting of the State Bank of Pakistan (SBP).
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.
