KARACHI, July 26(ABC): The gold price soared to a record high at Rs149,500 per tola (11.66 grams) in Pakistan on Tuesday. The surge was contradictory to the decline in the prices of the commodity in global markets.
Gold prices in the local bullion market soared by Rs1,200 per tola and Rs1,029 per 10 grams today to reach an all-time high of Rs149,500 and Rs128,172 amid continuous depreciation of the rupee against the US dollar.
The precious commodity has emerged as a safe asset in the local market during these challenging times of economic and political. People were aggressively buying gold to protect their cash from deflation.
With the latest increase of Rs1,200 per tola today, the gold price has surged by a total of Rs5,500 in the last five sessions.
Significant fluctuations in the local currency coupled with speculations that the rupee will further depreciate added fuel to the already surging price of the yellow metal.
“Safe-haven buying can be seen in the market; however, local customers are staying on the sidelines due to lack of purchasing power,” a gold dealer told while describing the market scenario.
In the international market, bullion prices decreased by $12 per ounce to settle at $1,718 — staying above the key level of $1,700.
Gold rates in Pakistan are around Rs2,500 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market rose by Rs20 per tola and Rs17.14 per 10 grams to settle at Rs1,600 and Rs1,371.74 today.