Islamabad: Just one thousand short of its all-time high, the price of gold in Pakistan rose by nearly 1.1% on Monday.
According to the All Sindh Sarafa Jewellers Association, the price of per tola gold increased by Rs1,750 per tola to settle at Rs161,300. Similarly, the price of gold on a ten-gram basis also increased by Rs1,500 to settle at Rs138,288.
The uptrend in the demand for gold continued despite a sharp increase in the key policy rate by the State Bank of Pakistan. On Friday last week, the SBP decided to increase the policy rate by 100 basis points to curb inflation.
With the continuous winning sessions, gold is heading towards its all-time high of Rs162,500 per tola that it recorded on July 28.
It is also important to note that Pakistan fulfils its gold demand by importing the precious commodity. Therefore, the rise and fall in the price depend upon many factors, including prices in the international market, the PKR to the USD exchange rate, and the demand and supply in domestic markets.