Weak Pakistan rupee pushes gold price to a record Rs164,000 per tola

With a depreciating Pakistan rupee, gold continues to be a top choice for investors, as the yellow metal’s per tola price reached a new high of Rs164,000.

According to the latest figures available on Monday, the gold price was up by Rs700 per tola and Rs601 per 10 grams to settle at Rs164,000 and Rs140,604 respectively.

The latest record price follows a trend set last week when the yellow metal touched a record high of Rs163,500 per tola in the local market as the instability of the Pakistan rupee against the US dollar shifted investors’ focus towards a safe-haven asset.

Cumulatively, the price of gold surged by Rs3,750, or 2.35 percent per tola during the week ending December 3.

This increase in gold price in the local market is in line with the prices in the international market and the depreciation of the Pakistani rupee against the US dollar.

It is expected that the precious commodity will maintain an uptrend as international prices are once again eyeing a $1,800 mark while there is “no hope of stability in local currency” till the country receives funds from friendly countries and clears the ninth review of the International Monetary Fund (IMF).

However, those associated with the business claim that this price in Pakistan still doesn’t cover the cost, as gold is cheaper by Rs2,000 per tola compared to the rate in Dubai.

The latest price for local markets was determined to keep in view the prices at which trade took place among buyers and sellers.

However, gold dealers lamented that their businesses were suffering because of a lack of purchasing power despite the wedding season.

In the international market, the price of the yellow metal pulled back slightly from a five-month high on Monday as the US dollar recouped some losses, although the metal still held near the key $1,800 level, buoyed by news of top bullion consumer China relaxing its stringent COVID-19 restrictions. It registered a meagre decline of $4 per ounce settling at $1,794.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,780 per tola and Rs1,526.06 per 10 grams.

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