KARACHI: Gold price hit an all-time high, surpassing Rs150,000 per tola (11.66 grams) in Pakistan on Wednesday mainly due to a speculative increase in demand and partly due to the depreciating local currency.
The price of gold, considered a safe haven, soared Rs2,500 per tola and Rs2,143 per 10 grams to an all-time high of Rs152,000 and Rs130,315 in the local market, the All Sindh Saraf and Jewellers Association (ASSJA) reported.
With the latest increase of Rs2,500 per tola today, the gold price has surged by a total of Rs7,000 in the last six sessions.
Gold is likely to maintain the uptrend until economic clarity is seen. Analysts are of the view that the worldwide economic slowdown and recession in some economies may spark a new wave of inflation and currency depreciation around the world.
Keeping these trends in view, investors may continue to take fresh positions in gold.
The association, however, stated that although gold hit an all-time high in Pakistan, its price still stood below cost. Gold is cheaper by Rs3,500 per tola compared to its price in Dubai.
The latest price for local markets was determined to keep in view the prices at which trades took place among buyers and sellers.
The bullion price is going up for the last many days. Besides, the international currency; the US dollar is strengthening globally. And the local currency (versus the US dollar) has continued to depreciate.
In the international market, bullion prices decreased by $3 per ounce to settle at $1,721 — staying above the key level of $1,700.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,600 per tola and Rs1,371.74 per 10 grams today.