Gold price in Pakistan reaches all-time high

KARACHI: Gold shines once again, as it hit an all-time high of Rs132,800 per tola (11.66 grams) in Pakistan on Wednesday after investors relocated the capital from deflating local currency to the inflating precious metal.

The gain in gold was seen as the commodity turned positive because risk-off sentiment gripped financial markets amid the possibility of more Western sanctions on Russia, although aggressive US rate hike bets kept bullion near a one-week low in the world market during the day.

It maintained an uptrend for the past two successive working days in the domestic market.

With a fresh increase of Rs800 per tola on Wednesday, the commodity cumulatively rose by Rs1,600 in the two days (Tuesday-Wednesday) to Rs132,800 per tola.

Investors took the move (relocating capital to gold) amid political uncertainties and rising concerns regarding economic stability.

The Pakistani rupee has started losing its value since the political unrest began in the country, which has affected the economy and increased concerns; the development convinced investors to relocate their capital from weakening commodities to strengthening gold.

In the international market, spot gold rose 0.3% to $1,928.96 per ounce. US gold futures GCv1 were 0.3% higher at $1,932.40.

Gold rates in Pakistan are around Rs5,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,520 and Rs1,303.15 today.

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