Gold prices in Pakistan surged to record highs on Wednesday as a result of political instability and economic uncertainty.
The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported a jump in the price of gold (24 carats) by Rs9,900 per tola and Rs8,487 per 10 grams to reach Rs240,000 and Rs205,761, respectively.
The rise in gold prices has been significant, with the price reaching a new high almost every day. During the first two sessions of the current week, the price of gold witnessed an increase of Rs4,600 per tola, rising by Rs1,400 per tola on Monday and Rs3,200 per tola on Tuesday. The previous week saw an aggregate increase in the price of gold by Rs6,000 per tola, with the exception of Friday when the price declined by Rs300 per tola.
The rise in gold prices can be attributed to the recent political turmoil in the country following the arrest of former prime minister and Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan, which has led to violent protests and the deployment of the army in three provinces.
Besides inflation, the delay in receiving a crucial loan tranche from the International Monetary Fund (IMF) also negatively impacts the currency market, which drives up the demand for gold.
Meanwhile, the price of silver has also hit a new high, increasing by Rs100 per tola and Rs85.75 per 10 grams to settle at Rs3,100 and Rs2,657.7, respectively.
