Friday saw a reduction in the price of gold in Pakistan along with a decline in its rate on the global market.
The price of gold (24 carats) decreased by Rs 100 per tola and Rs 86 per 10 grammes to reach Rs 218,700 and Rs 187,500, respectively, according to statistics provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
Gold’s price on the world market dropped by $17 to end the day at $1,984 per ounce.
As economic fundamentals deteriorated, the rupee fell in value, and inflation shot up to record levels, the price of gold in Pakistan has been steadily increasing. People choose to purchase the precious metal in these situations to safeguard themselves against inflation and currency devaluation.
On April 11, the interbank market saw the rupee hit an all-time low of Rs288.43 versus the US dollar. The US dollar continues to trade over Rs280 despite its recent recovery.
According to statistics issued by the State Bank of Pakistan on Friday, the rupee increased by Re0.08 or 0.03% in the interbank market against the US dollar.
Gold demand increases due to failure in crucial economic rescue agreement with IMF, leading to threat of national default.
The IMF programme’s failure to resume on schedule has a negative effect on the currency market, which increases demand for gold.
On the other hand, silver’s cost rose to a record level. The price of silver increased by Rs30 per tola and Rs25.72 per 10 grammes, reaching Rs2,600 and Rs2,229.08, respectively, according to data provided by the association.