The price of gold witnessed a sharp increase on Thursday as it rose by Rs4,900 per tola to an all-time high of Rs195,500, according to All Sindh Saraf and Jewellers Association.

The spike was led by a sharp depreciation in value of the rupee against the US dollar that fell 9.6% or Rs24.54 in a single day to close at 255.43.

On Wednesday, the rate of the yellow metal had closed at Rs190,600 per tola.

Similarly, the price of 10 grams of 24 karat gold also increased by Rs4,201 on Thursday to Rs167,610 against, whereas that of 10 grams of 22 karat increased to Rs153,642 from Rs149,791.

The precious metal is considered a safe-haven for investment in times of crisis such as the ongoing economic distress in Pakistan.

Over the past one week, the per tola price of gold has recorded an increase of Rs10,200.

Pakistan remains a net importer of gold therefore any change in the exchange rate impacts the value of the yellow metal.