Gold opens 2023 on yet another all-time high note in Pakistan

Gold opens 2023 on yet another all-time high note in Pakistan. Toeing the line of its 2022 trend, gold widened the winning streak on the first trading day of 2023, surpassing the Rs187,000 per tola mark for the first time in the history of Pakistan.

According to All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported the price of gold soared by Rs3,300 per tola and Rs2,829 per 10 grams to settle at Rs187,200 and Rs160,494.

In 2022, the safe haven asset gained Rs57,900 or 45.95% from Rs126,000 per tola on December 31, 2021.

The association reported that the price of gold has been “overcost” by Rs6,500 per tola in Pakistan, as compared to prices in Dubai. This means that, at present, the Pakistani gold market is more expensive than the world market.

Read more: Gold price breaks 12-day-long winning streak in Pakistan

The shift from “under cost” to “over cost” also raises questions about the sustainability of the bullion price in Pakistan.

The difference between gold’s official price and the price at which it is being sold is widening. The association has announced the official price at Rs187,200 per tola in the Sarafa market. It is, however, being sold at a higher price.

Financial pundits and goldsmiths anticipate that the price of gold may rise to Rs200,000 per tola due to the rupee devaluation against the US dollar under the current cycle.

However, they also believe that an inflow of $6-8 billion from multilateral and bilateral creditors will burst the pricing bubble in Pakistan.

Silver rates increased by Rs30 per tola to reach a record high of Rs2,100 in the country. The price of 10-gram silver also rose by Rs25.71 to Rs1,800.41.