Gold trading at record high of Rs 145,500/tola

Gold trading at record high of Rs 145,500/tola

Gold trading at record high of Rs 145,500/tola
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KARACHI: The prices of gold gained Rs1,500 in the local market to an all-time high of Rs145,500/tola on Friday as the downward spiral of the rupee continued against the dollar.

Gold 24kt gained Rs1,500/tola and Rs1,285/10 grammes to hit Rs145,500/tola and Rs124,742/10 grammes, respectively.

The latest record high was recorded in the prices of yellow metal amid the continuous decline in the value of rupee due to depleting foreign exchange reserves of the country.

The government’s negotiations with the International Monetary Fund (IMF) have remained stalled for the resumption of the Extended Fund Facility (EFF) programme to boost the country’s forex reserves.

Despite the government officials’ various measures to pave the way for the resumption of the IMF programme, uncertainty prevailed in the market regarding a successful outcome of the dialogues.

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Additionally, the government has so far failed to convince other friendly countries for the rollover of loan programmes which furthered the pressure on the value of rupee, which declined to the record low of Rs208.74 against the dollar on Friday.

Currency dealers attributed the free-fall in the currency to the depleting forex reserves of the country amid higher import bill and minimal inflows of the foreign exchange.

Recently, the government banned the import of various non-essential and luxury items to minimise the outflow of the foreign exchange, besides slashing subsidies on the prices of fuel and electricity, a prerequisite condition by the IMF for the revival of the multibillion dollar programme.

However, these measures do not seem to stop the flight of the dollar as higher import bill on the back of elevated global commodity prices and minimal growth in the exports widened the current account deficit.

The official foreign exchange reserves of the State Bank of Pakistan (SBP) declined $241 million to $8.98 billion during the week ended June 10, compared with $9.22 billion on June 3.

The overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $14.94 billion while the net reserves held by banks amounted to $5.95 billion.

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The price of gold in the international market also witnessed an increase of $27 per ounce to $1,846/ounce.

The price of silver remained unchanged at Rs1,560/tola and Rs1,337.44/10 grammes, respectively, while the international silver prices were recorded at $21.90/ounce on Friday.

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