The price of gold in Pakistan rocketed to an all-time high of Rs132,000 a tola on Tuesday, while gold rates in the world market remained mostly range-bound over the previous month.
Gold prices in the local bullion market rose by Rs4,200 per tola and Rs3,600 per gram to Rs132,000 per tola and Rs113,168 per gram, respectively.
Given that Pakistan satisfies its need for precious metals through imports, a large devaluation of the rupee against the US dollar is thought to be the major cause of the increase.
Meanwhile, because the stock market is under selling pressure due to the economy’s overheating, investors are converting their money to gold.
Gold is drawing safe-haven investment once again. According to analysts, people often buy gold during inflationary periods, and inflation is currently Pakistan’s biggest challenge.
Because the government and the central bank have tightened regulations governing the purchase of foreign currencies on the open market, investors who used to pour money into other currencies, particularly the US dollar, to avoid the impact of inflation are now buying gold.
