Karachi: At Rs219,500 per tola (11.66 grammes) on Saturday in KARACHI, gold hit a new all-time high. This because people thought that demand for the safe asset stayed high. The price of bullion went up by Rs800 per tola, according to the All Pakistan Saraf Gems and Jewellers Association (APSGJA). Abdullah Abdul Razzak Chand, a member of the association, told that the price of gold kept going up because investors in Pakistan buying so much of it.
He said, though, that there wasn’t enough information to figure out how much demand there was. “The trend of buying 10-tola gold bars shows that investors are putting their savings in this safe asset to avoid the effects of the devaluation of the rupee during a time of economic crisis.” He also said that a lot of investors had to put their money in gold because the economy and government were not stable.
Also, the fact that the US dollar not available on the open market made currency investors more likely to buy bullion. Chand said that the recent rise in the price of gold partly caused by the rise in international markets. On Friday, the price of an ounce (31.10 grammes) of gold went up by $6, to $1,990. On Friday night, however, the local association cut the price by Rs100 per tola because the price of gold fell $17 per ounce on the international market during the day.
The main thing that affects the price of gold in Pakistan is the exchange rate between rupees and dollars. Throughout this week, the exchange rate has stayed around Rs284 per US dollar.
