Gold makes fresh high at Rs134,300/tola

KARACHI: The price of gold in Pakistan gained Rs1,500/tola to reach the all-time high of Rs134,300/tola on Thursday amid the continuous depreciation in the rupee against the dollar.

The local currency remained under pressure as the SBP’s foreign exchange reserves largely depleted due to debt repayments and government payments.

The political instability in the country, uncertainty regarding the new round of talks with the International Monetary Fund (IMF) and higher commodity prices in the international market had a negative effect on the stability of the rupee.

Gold 24kt gained Rs1,500/tola and Rs1,286/10grammes in the local market to hit Rs134,300/tola and Rs115,141/10grammes.

The price of Silver remained unchanged in the local market at Rs1,520/tola and Rs1,303.15/10grammes, while the international Silver prices were recorded at $24.43 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 an increase of $1 dollar to reach $1,927/ounce on Thursday, as inflation worries intensified by the Ukraine war and mounting sanctions on Russia eclipsed pressure from the US Federal Reserve’s aggressive policy stance.