22.6 C
New York

Gold Prices in Pakistan Steady Near Record Highs as Investors Seek Inflation Hedge

Published:

- Advertisement -

Gold prices in Pakistan remained unchanged at Rs214,600 per tola on Saturday, but they continued to trade near record highs reached earlier this week. The precious metal’s appeal as a hedge against a depreciating rupee remained intact, leading to a surge in its demand. The price of gold (24 carats) remained stable at Rs183,985 per 10 grams. The price of gold rose by Rs5,100, or 2.43%, per tola during the week ended April 8. However, the meager recovery of the Pakistan rupee against the dollar during the last two sessions pulled the prices of the yellow metal down.

Gold is often seen as a hedge against inflation, and its rate is hovering around a historic high after Pakistan’s monthly inflation in March soared to an all-time high level of 35.4% from a year earlier. The gold price moves in line with the rupee-dollar parity as the country meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country.

The association also mentioned that the price of gold is Rs7,000 per tola “under cost” in Pakistan compared to the Dubai market, showing that the Pakistani gold market is currently cheaper than the global market. Silver prices in the domestic market remained unchanged at Rs2,450 per tola and Rs2,100.48 per 10 grams. In the international market, gold prices remained unchanged at $2,008 per ounce.

Pakistan’s gold market is directly influenced by the international market and currency exchange rates. The demand for gold in Pakistan is mainly driven by the jewelry industry, with gold being considered an essential part of cultural ceremonies and weddings. Pakistan’s increasing population, growing middle class, and increasing disposable income are expected to drive the demand for gold even further.

The gold prices in Pakistan remained steady near record highs, primarily driven by its appeal as a hedge against a depreciating rupee and inflation. The prices of gold are closely linked to the international market, and traders follow its international price in setting rates in the country. With Pakistan’s growing population and increasing disposable income, the demand for gold is expected to rise even further in the coming years.

- Advertisement -

Related articles

Recent articles

spot_img