Observer Report Karachi
Gold price in Pakistan jumped by Rs3,300 per tola in Pakistan in line with international markets due to rupee depreciation and record high inflation in US.
Gold prices in the local bullion market soared by Rs3,300 per tola and Rs2,829 per 10 grams on Thursday to reach Rs129,100 per tola and Rs110,682 per 10 grams.
A gold dealer told a news channel that a consistent price increase has negatively affected the already low demand for gold in the local market.
“We do see some seasonal demand due to wedding season but comparatively a lack of purchasing power has pushed consumers towards artificial jewellery,” he said.
Shedding light on the outlook of the yellow metal, the dealer said that going forward, the price will further increase.
With a fresh increase of Rs3,300 per tola, the yellow metal has recorded an increase of Rs11,700 per tola during the last seven sessions, according to All Sindh Saraf and Jewellers Association.
The fresh increase comes on the back of concerns regarding uncertain economic conditions which have sparked a flight from risky commodities towards safer ones.
Investors are taking aggressive positions on gold due to inflation concerns. Investors who used to pour money into foreign currencies, particularly in the US dollar to avoid the impact of inflation, are now buying gold because the government and the central bank have tightened regulations pertaining to the purchase of foreign currencies in the open market.
The price of gold in the international market rose by $38 firming close to the previous session’s near five-month high, as a big jump in US inflation — which reached a 30-year high — pushed investors towards the safety of bullion to settle at $1,863.
Meanwhile, silver prices in the domestic market recorded an increase of Rs40 per tola and Rs34.30 per 10-grams to settle at Rs1,480 per tola and Rs1,268.86 per 10 grams.
