The per-tola price of 24-karat gold spiked on Friday and surpassed the psychological barrier of Rs200,000 on the back of rupee depreciation.
According to rates shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), gold price jumped Rs7,000 per tola to reach all-time high of Rs202,500 on Friday.
Gold price soars to all-time high of Rs195,500 per tola after rupee’s dramatic fall
Although the gold price in the international market fell $7 to $1,929, the rate of yellow metal soared in Pakistan due to rupee depreciation.
On Friday, Pakistan’s rupee fell 2.73% or Rs7.17 to close at 262.6 against dollar. This takes combined depreciation in two sessions (Thursday and Friday) to 12.1%.
The gold price in Pakistan closely follows the trajectory of the US dollar because the country remains a net importer of the precious metal.
Market experts cited that the historic increase in the gold price was due to rupee movement.
Speaking to Business Recorder, APGJSA President Haroon Chand said resumption of the International Monetary Fund (IMF) programme was mandatory to stabilise the market.
The seasoned market official said speculators have been active in the market due to uncertainty.
“Otherwise, there is little physical gold trade. Jewelers are sitting idle despite it being a high-selling season,” he said.
AA Gold Commodities Director Adnan Agar said gold price has gone up in Pakistan due to rupee depreciation against dollar.
“The precious metal’s price will continue to remain volatile unless the IMF programme resumes,” he said.
Source: Brecorder
