Gold on Thursday broke all previous records as price surpassed Rs166,000 per tola barrier after registering an increase of 1.4%.
Data released by All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the prices of gold surged by Rs2,250 per tola and Rs1,929 per 10 grams to settle at an all-time high of Rs166,400 and Rs142,661.
On December 7, the gold price surged to a record high of Rs164,150 per tola as people took refuge in the safe-haven metal on mounting concerns that the nation’s economic conditions will deteriorate further.
Meanwhile, silver prices in the domestic market remained unchanged at an all-time high level of Rs1,860 per tola and Rs1,594.65 per 10 grams.
The association mentioned that although gold hit an all-time high in Pakistan, its price still stood below cost. Gold is cheaper by Rs3,000 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.
It should also be noted that gold demand in Pakistan jumped 34% to 13 tonnes during the period of July and September 2022 from a year earlier, Bloomberg reported Wednesday citing data compiled by the World Gold Council.
The data revealed that this was the most amount of gold purchased during a quarter in at least about three years.
The gold rally is more striking because the precious metal generally tracks global prices, which have come under pressure this year due to the US Federal Reserve’s aggressive tightening measures.
In the international market, gold price registered an increase of $10 per ounce settling at $1,784.
However, gold dealers lament that since gold prices were touching new peaks in the country, it had seized to exist as a lucrative business in the country.
Only investors are investing in gold here. Otherwise, artificial jewellery is being used in marriages and other ceremonies.
Khurram Schehzad, chief executive officer at Karachi-based Alpha Beta Core Solution, told Bloomberg that “people are looking at banks not clearing payments and fearing the worst.”
Consequently, the price jump was the result of aggressive buying by investors as another safe bet — buying dollars — is not widely available due to economic woes, he said.