Gold prices in Pakistan rose by Rs3,400 per tola on Thursday, heading back toward an all-time high they hit in May, as jittery investors looked for safe-haven amid rupee’s continuous fall against US dollar.

According to rates shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-carat gold settled at Rs239,800 per tola in the local market.

It was the second highest per tola price of gold recorded in Pakistan.

Earlier, gold prices in Pakistan hit an all-time high of Rs240,000 per tola on May 10, 2023.

“Gold prices are reaching record high because of rupee’s freefall in the market, coupled with rising international prices of the yellow metal,” Abdullah Abdul Razzak Chand, Vice President Society Jewellers Welfare Association, said.

He added that economic uncertainty in the country, high inflation, and devaluation have collectively affected gold retailers to a great extent.

“People are not buying jewellery as their purchasing power has shrunk because of inflation,” Chand said, mentioning that many retailers have reduced their labour by half.

Investors are moving to gold as they are seeking a safe-haven at a time when there is uncertainty in the country and the local currency is losing its value. This has resulted in a significant demand for raw gold.

Meanwhile, according to Chand, jewellers and their employees are under pressure in the current scenario, with declining sales of jewellery.

The price of 10 gram gold on Thursday also rose by Rs2,915 to Rs205,590.

In the international market, the price of the precious metal increased by $7 to $1,945 per ounce.

Silver rates rose by Rs50 to Rs2,900 per tola.