The per-tola price of gold spiked again on Saturday and rose Rs6,500 to reach the historic level of Rs209,000 owing to rupee depreciation and speculation.
According to data released by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of the yellow metal has risen by Rs23,700 per told since January 20, 2023.
Gold price shoots to record high, now stands at Rs202,500 per tola
Although the gold price in the international market fell around $2 to $1,928 per ounce on Saturday, the rate of yellow metal surged in Pakistan due to weak rupee.
Pakistan remains a net importer of gold therefore any change in the exchange rate impacts the price of the previous metal.
Market experts cited that the historic increase in the gold price was due to rupee movement as well as active speculation in the gold market.
The price of dollar rose over 12% in the last two trading sessions in the interbank market.
Speaking to Business Recorder, APGJSA President Haroon Chand said that “speculators are the prime reason behind the steep increase in gold rates.”
Presently, each tola of gold is being sold for Rs5,000 higher than its price in Dubai.
“Given that there is no demand in the market in Pakistan, the question is how can gold sell at an over-cost (above its price in Dubai for comparison),” Chand said.
AA Gold Commodities Director Adnan Agar said gold price has gone up in Pakistan due to sharp rupee depreciation.
“The price of the precious metal will continue to remain volatile till the International Monetary Fund (IMF) programme resumes,” he said.
Meanwhile, Chand said that he wanted shopkeepers and buyers to stop trading until the IMF programme resumes to curb speculation in the market. According to him, such a move will stabilise the market.
The seasoned market official said that speculators have been active due to ongoing economic uncertainty.
“Other than this, there is little physical gold trade. Jewelers are sitting idle despite it being a high-selling season,” he said.
Investment in gold and other precious metals such as silver are considered safe in times of crisis such as wars, natural disasters and economic turmoil.