Gold hits all-time high in Pakistan

KARACHI: The price of gold in Pakistan gained Rs800/tola to reach the all-time high of Rs132,800/tola on Wednesday amid the all-time high of dollar against the local currency.

The political instability in the country, lingering talks with the International Monetary Fund (IMF) and higher commodity prices in the global market have badly hit the stability of the rupee.

Gold 24kt gained Rs800/tola and Rs686/10 grammes in the local market to hit Rs132,000/tola and Rs113,855/10 grammes.

The price of silver remained unchanged in the local market at Rs1,520/tola and Rs1,303.15/10 grammes, while the international Silver prices were recorded at $24.32 per ounce on Wednesday.

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

The elevated global commodity prices and a recovery in the domestic demand post Covid-19 has put significant pressure on Pakistan’s foreign-exchange reserves in recent months, while the large external payments against foreign debts also played a part in depressing the rupee value.

The country’s foreign exchange reserves depleted by around $8.67 billion in just seven months, falling from a record high of $27.23 billion.

The prices of gold bullion recorded a decline of $2 dollar to reach $1,926/ounce as 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.