Pakistan’s economic turmoil and an increase in international gold rates have led to a new high in the value of the precious metal in the country.

According to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the rate of gold (24 carats) surged by Rs2,600 per tola and Rs2,229 per 10 grams to reach Rs225,300 and Rs193,158, respectively.

The price of gold in the international market also rose by $29 to settle at $2,044 per ounce. In Pakistan, the rising gold rate is a consequence of weakened economic fundamentals, rupee depreciation, and record-high inflation.

During such times, people prefer to buy gold as a hedge against inflation and currency depreciation. Furthermore, the delay in an agreement with the International Monetary Fund (IMF) for a much-needed economic bailout has led to increased demand for gold as it negatively impacts the currency market.

The APSGJA also revealed that the price of gold is Rs2,500 per tola “undercost” in Pakistan as compared to the Dubai market, indicating that the Pakistani gold market is currently cheaper than the global market.

Finally, the rate of silver also increased to a new high in the country, with the rate of silver rising by Rs120 per tola and Rs102.88 per 10 grams to settle at Rs2,870 and Rs2,357.68, respectively.