Gold reaches all-time high of Rs171,900/tola

• The local unit continued to decline against the dollar in the interbank.
• A weakened rupee usually results in an increase in the prices of gold.
• The prices of yellow metal changes in line with movement of the rupee.

KARACHI: The price of gold increased Rs500 to hit another all-time high of Rs171,900 on Friday as the deteriorating economy further pushed down the rupee.

Gold 24kt gained Rs500/tola and Rs428/10 grammes to hit Rs171,900/tola and Rs147,376/10 grammes, respectively.

The local unit continued to decline against the dollar in the interbank foreign exchange market as the macroeconomics of the country worsened.

The foreign exchange reserves of the country witnessed another decline during the outgoing week as the foreign exchange reserves held by the State Bank of Pakistan (SBP) fell $14.9 million to reach 6.7 billion during the week ended December 9, compared with $6.71 billion on December 2.

Overall, the liquid foreign currency reserves held by the country, including the net reserves held by banks other than the SBP, stood at $12.57 billion. The net reserves held by banks amounted to $5.87 billion.

The prices of the yellow metal changes in line with the movement of the rupee. A weakened rupee usually results in an increase in the prices of gold in the local market.

In the international market, gold prices were muted on Friday after logging sharp losses in the prior sessions as growing fears of a recession were compounded by signals from several major central banks that interest rates were far from peaking.

Spot gold was flat around $1,776.15/ounce, while gold futures steadied around $1,787.05/ounce.

In the local market, the prices of silver remained at Rs1,960/tola and Rs1,680.38/10 grammes.

Also Read

Gold hits historic high of Rs171,400/tola

The prices of gold in the local market of Pakistan depend on...