On Monday, gold prices in Pakistan soared as a weaker rupee and inflation fears fueled demand for the safe-haven metal.
Today, gold prices in the local bullion market jumped by Rs2,350 per tola and Rs2,015 per ten grams to Rs141,650 and Rs121,442, respectively, despite the rupee’s continued weakening against the US dollar.
On Saturday, the precious metal reached Rs139,300 per tola and Rs119,427 per gram.
Significant changes in the local currency, as well as expectations that the rupee will continue to decline, added fuel to the yellow metal’s already soaring price.
Since the beginning of the bullish period, the price of yellow metal has increased by Rs9,300 per tola (May 6).
Gold is often utilized as a safe store of value during times of political and economic turmoil since it is considered a hedge against rising inflation.
It is worth noting that gold remains a safe haven against inflation (rupee depreciation and rise in key commodity prices), and people invest in gold to protect themselves from the effects of currency depreciation.
The price of yellow metal jumped by $15 per ounce on the international market, settling at $1,862.
When compared to the Dubai market, gold prices in Pakistan are roughly Rs1,500 lower.
Meanwhile, silver prices in the domestic market increased by Rs20 per tola and Rs17.14 per ten grams to Rs1,590 and Rs1,363.16 respectively today.
To read our blog on “Gold coins glimmer amid global gloom in the cryptoverse” click here.
