Gold hits all-time high of Rs135,700/tola

KARACHI: The gold extended gains to reach an all-time high of Rs135,700/tola on Wednesday as the dollar topped at Rs190.02 against the local currency۔

Gold 24kt gained Rs1,300/tola and Rs1,115/10grammes in the local market to hit Rs135,700/tola and Rs116,341/10grammes, respectively۔

The precious metal recorded the previous high of Rs134,400/tola on May 10, as the local unit continued to decline against the greenback due to reducing forex reserves and widening current account deficit۔

Silver remained unchanged in the local market at Rs1,500/tola and Rs1,286/10grammes, while the international Silver prices were recorded at $21.80 per ounce on Wednesday.

The rupee made another all-time low of Rs190.02 amid deteriorating economic conditions where the State Bank of Pakistan’s (SBP) reserves recorded a decline of $59 million to $10.5 billion during the week ending April 30. The reserves held by commercial banks fell to $6.0 billion.

The total liquid foreign reserves held by the country stood at $16.5 billion, compared with $16.6 billion in the previous week.
Pakistan’s foreign exchange reserves fell by $115 million during the week ending April 30, on the back of increasing external debt payments and higher current account deficit.

The rupee took a tumble due to an uncertain picture of the economic stability in the country, stalled talks with the IMF for loan disbursement and higher commodity prices in the international market.
The price of precious metal has seen a significant increase as the government has so far failed to take any measures to provide any support to the value of the rupee.

Talks with the International Monetary Fund (IMF) for the revival of the Extended Fund Facility (EFF) have seen no progress, while the central bank’s foreign exchange reserves have been witnessing continuous decline due to debt repayments and government payments۔

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