Gold reaches historic high of Rs169,650 per tola

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ISLAMABAD, DEC 12: Gold price in Pakistan reached a historic high of Rs169,650 per tola on Monday as investors continued to take refuge in the safe-haven metal on mounting concerns that the country’s economic conditions will deteriorate further.

According to All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the prices of gold surged by Rs2,350 per tola and Rs2,016 per 10 grams to settle at an all-time high of Rs169,650 and Rs145,448, respectively, data released by All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.

Gold, which has been continuously touching new peaks for the last few days, closed at Rs167,300 per tola after registering a gain of Rs4,000, or 2.49% during the week ended December 10.

Meanwhile, silver prices surpassed the key level of Rs1,900 per tola. The price surged by Rs80 per tola and Rs68.58 per 10 grams to settle at an all-time high level of Rs1,970 and Rs1,688.95.

Speaking to Geo.tv, AA Gold Commodities Director Adnan Agar cited a shortage of dollars as major reason behind rising gold prices in the local market.

“Investors want to invest in the dollar because of the rising difference between the open market and the interbank market rate, which is around Rs20-30; however, despite the significant difference dollar isn’t available and people are concerned about the financial situation in Pakistan and chances of default,” he explained the reason behind sudden shift in investors focus.

He added that because of the speculations that the dollar can reach 350-400 against the rupee; investors are trying to invest in the precious commodity.

“However, due to its [dollar] shortage they have shifted their focus toward gold as the price of the yellow metal is also rising in the international market,” Agar maintained. Elaborating on the main driving points, he said that amid the current situation people are looking for investment options which are very limited because small investors cannot invest in real estate at the moment because of its high prices.

“Therefore, small and medium investors are investing in gold so that their money is secured as the rupee is continuously depreciating against the dollar,” he stated.

Gold dealers, however, lament that since gold prices were touching new peaks in the country, it had seized to exist as a lucrative business.

Only investors are investing in gold here. Otherwise, artificial jewellery is being used in marriages and other ceremonies.

It should also be noted that gold demand in Pakistan jumped 34% to 13 tonnes during the period of July and September 2022 from a year earlier, Bloomberg reported Wednesday citing data compiled by the World Gold Council.

The data revealed that this was the most amount of gold purchased during a quarter in at least about three years.

In the international market, gold price fell registered a decline of $3 per ounce settling at $1,794.