On Wednesday, the price of gold reached another record high as it continued its upward trend. The price of precious yellow metal in Pakistan is currently higher than the global market.
Gold prices increased by Rs900 per tola and Rs772 per 10 grammes, respectively, according to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). These prices now stand at Rs188,600 and Rs161,694 respectively.
Owing to the Pakistani rupee’s depreciation against the US dollar during the present cycle and the lack of US dollars, traders predict that the price of gold would reach Rs200,000 per tola.
According to market analysts, the $6–$8 billion inflow from multilateral and bilateral creditors will pop Pakistan’s gold price bubble.
Silver’s price per tola, however, stayed constant at Rs2,150. The cost of 10-gramme silver remained essentially constant at Rs1,843.27.
Gold prices increased more than 1 per cent on Wednesday, reaching their highest level since mid-June due to a weaker rupee and mounting predictions that the Federal Reserve will raise interest rates gradually rather than aggressively.
The markets have now priced in the possibility that the central bank may raise interest rates by a full 50-100 basis points on January 23 after Pakistan’s December inflation data was revealed on Monday.
Greater interest rates increase the opportunity cost of owning non-yielding metal, despite the fact that gold is regarded as a safe investment during times of uncertainty and a hedge against higher inflation.
