Due to the country’s currency scarcity, investors turned their attention to gold, which led to its price in Pakistan reaching a record high of Rs169,650 per tola on Monday.
As investors continued to seek refuge in the safe-haven metal due to growing worries that the nation’s economic situation could worsen, the price of gold per tola increased by Rs2,350 to an all-time high.
The price of gold increased by Rs2,016 per 10 grams to close at Rs145,448 according to statistics provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
Meanwhile, silver prices rose beyond the crucial Rs1,900 per tola mark. Price increases of Rs. 80 per tola and Rs. 68.58 per 10 kilos brought the price to an all-time high of Rs. 1,970 and Rs. 1,688.95.
Adnan Agar, Director of AA Gold Commodities, said to Geo. tv that a lack of dollars was a key factor driving up gold prices in the local market.
“Investors want to invest in the dollar because of the increasing discrepancy between the open market and the interbank market rate, which is approximately Rs20-30; however, despite the sizable difference dollar isn’t available and people are concerned about the financial crisis in Pakistan, and prospects of default,” he said the reason for the abrupt change in investors’ emphasis.
He continued by saying that investors are attempting to buy the pricey commodity due to predictions that the dollar might rise to 350–400 versus the rupee.
However, Agar argued, “because of its [dollar] shortage they have switched their emphasis toward gold as the price of the yellow metal is also growing in the worldwide market.”
He elaborated on the key factors, saying that given the current circumstances, individuals are seeking investment possibilities that are quite restricted because small investors now cannot engage in real estate due to its high pricing.
Because of the rupee’s ongoing depreciation versus the dollar, he explained, “little and medium investors are investing in gold to safeguard their money.”
Gold dealers regret, however, that their profitable industry has since ceased to exist as a result of the nation’s gold prices reaching new highs.
In this case, gold is only being purchased by investors. Otherwise, fake jewelry is worn for weddings and other rituals.
In addition, it should be mentioned that Pakistan had a 34% increase in gold demand between July and September 2022 compared to the same period the previous year, according to statistics collated by the World Gold Council and reported on Wednesday by Bloomberg.
According to the figures, this was the largest quarter for gold purchases in at least three years.
Gold’s price dropped by $3 per ounce on the world market, finishing at $1,794.
