Gold prices shoot up to historic high at Rs67,800 per tola

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Gold prices shot up to an all-time high of Rs67,800 per tola (11.66 grams) in Pakistan, taking cue from the uptrend in the international commodity market.

The surge coincided with expectations that the US central bank might revise interest rate upwards on Wednesday, said experts. Gold prices surged around $8 per ounce (31.10 grams) to a five-month high at $1,248 in the world market on Tuesday.

“The US Federal Open Market Committee (FOMC) is likely to increase interest rate by 25 basis points to 2.5pc,” said Rays Commodity Chief Operating Officer Adnan Agar. “Gold remains a safe haven for investors during the time period when interest rate hikes push up inflation.”

Pakistan, which remains a relatively smaller bullion market that largely relies on imports, sets gold prices every day after incorporating different factors including bullion price movements in the international market, fluctuation in US dollar value in domestic and world markets and bullion demand-supply situation in the local market.

Gold prices increased Rs1,450 to a record high of Rs67,800 per tola in Pakistan, the All Sindh Saraf and Jewellers Association confirmed.

“Gold prices shot up to the new peak in the wake of demand from investors,” said Association President Haji Haroon Chand. “Speculation about further depreciation of the rupee to around 150 to the US dollar from 138.92 at present may keep the gold market uncertain in the short run.”

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