Gold Prices Remain Steady in Pakistan Near Record High

Sat Apr 08 2023
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ISLAMABAD: Gold prices in Pakistan remained stable on Saturday, hovering near record highs as the precious metal’s role as a hedge against a depreciating rupee remained strong.

According to the latest data from the All-Pakistan Sarafa Gems and Jewellers Association, the price of gold (24 carats) remained unchanged at Rs214,600 per tola and Rs183,985 per 10 grams, respectively.

The price of gold had risen by Rs5,100 per tola, or 2.43%, over the week ending on April 8.

The yellow metal had touched an all-time high of Rs217,000 per tola but had fallen slightly after the Pakistani rupee gained some value against the US dollar in the last two sessions.

Gold is often seen as a hedge against inflation, and its price is hovering near an all-time high in Pakistan following a surge in the country’s monthly inflation rate in March to a record 35.4%.

The rupee-dollar exchange rate heavily influences the price of gold as Pakistan meets most of its gold demand through imports, and traders follow the international price of gold to set domestic rates.

Pakistani jewelers import gold against the US dollar and UAE dirham before converting its price into rupees.

Gold prices in Dubai market

The association also stated that gold prices in Pakistan are Rs7,000 per tola lower than in the Dubai market, indicating that the Pakistani gold market is currently cheaper than the global market.

Silver prices in Pakistan remained stable at Rs2,450 per tola and Rs2,100.48 per 10 grams, while gold prices remained unchanged at $2,008 per ounce in the international market.

The steady gold prices in Pakistan come amid a global rise in gold prices, driven by rising concerns over inflation and a weaker US dollar.

Despite the slight dip in the price of gold in Pakistan due to a stronger rupee, the country’s gold market remains strong, driven by rising inflation and the metal’s role as a safe-haven asset.

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