KARACHI: Gold in Pakistan jumped by over Rs1,000 per tola in Pakistan as the rupee depreciated to an all-time low and the results of Punjab’s by-polls clouded the political outlook and bolstered the bullion’s safe-haven allure.
The precious commodity has emerged as a safe asset in these challenging times of the economic and political crisis. People were aggressively buying gold to protect their cash from deflation.
Gold prices in the local bullion market soared by Rs1,550 per tola and Rs1,329 per 10 grams today to close at Rs142,400 and Rs122,085 amid continuous depreciation of the rupee against the US dollar.
Significant fluctuations in the local currency coupled with speculations that the rupee will further depreciate triggered an uptrend in the 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 Geo.tv while describing the market scenario.
In the international market, the price of yellow metal increased by $6 per ounce to settle at $1,715.
Gold rates in Pakistan are around Rs2,000 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,570 and Rs1,346.02 today.