Gold prices in Pakistan rose on Saturday, in line with a surge in international prices, which sparked concerns over expensive imports and raised demand for safe-haven assets.
The price of gold (24 carats) increased by Rs1,200 per tola and Rs1,029 per 10 grams, settling at Rs198,700 and Rs170,353, respectively, according to All-Pakistan Sarafa Gems and Jewelers Association (APSGJA).
Gold demand in Pakistan has skyrocketed, with traders setting rates in the country according to its international price. Jewelers import the metal against the US dollar and UAE dirham before converting its price into rupees. However, the yellow metal has lost Rs1,300 per tola during the outgoing week, only registering gains twice due to the volatility of the Pakistani currency.
While analysts suggest that gold may be an effective defense against inflation over long periods of time, the inflation-adjusted price of gold tends to swing wildly over shorter periods, making it less of a strong near-term hedge for inflation.
Meanwhile, silver prices in the domestic market remained unchanged at Rs2,080 per tola and Rs1,783.26 per 10 grams. In the international market, gold prices rose nearly 2% due to a slide in US Treasury yields and broader financial market concerns, driving safe-haven flows into bullion. The per-ounce price settled at $1,866 after a surge of $32.
