KARACHI: The price of gold surged to a record-breaking Rs257,700 per tola (11.66 grams) on Tuesday, reflecting the global upward trend. Meanwhile, the Pakistani rupee showed a slight decline, closing at Rs278.70 against the US dollar in the inter-bank market.
According to the All Pakistan Sarafa Gems and Jewellers Association, the bullion price jumped by Rs1,200 per tola in a single day, marking a cumulative increase of Rs2,200 over the past five working days, with prices remaining unchanged on three of those days.
Abdullah Abdul Razzak, a member of the gold pricing body, informed The Express Tribune that the precious metal’s rise is largely due to speculation that the US Federal Reserve may reduce interest rates next month. Additionally, ongoing political instability in the Middle East has driven global investors to seek safety in gold.
In the international market, gold rose by $19 to reach $2,458 per ounce (31.10 grams), according to the association.
Despite the historic rise, local gold prices are still Rs2,000 per tola lower than those in the Dubai market. Razzak noted that demand for pure gold bars remains robust as people continue to invest in the safe-haven asset to shield themselves from a potential devaluation of the rupee.
Central bank data revealed a minor depreciation of the local currency, with the rupee slipping by Rs0.06 to Rs278.70 against the US dollar, maintaining its downward trend as demand for foreign currency increased ahead of the public holiday marking Pakistan’s Independence Day.
The Exchange Companies Association of Pakistan (ECAP) reported that the rupee held steady at Rs280.40 per dollar in the open market for the seventh consecutive working day.
