KARACHI: Gold prices in Pakistan skyrocketed on Thursday partly due to the uptrend in commodity prices in the global market and partly due to rupee depreciation.
Gold prices in the local bullion market soared by Rs2,800 per tola and Rs2,400 per 10 grams today to reach Rs120,200 per tola and Rs103,052 per 10 grams.
A day earlier, the precious commodity closed at Rs117,400 per tola and Rs100,652 per 10 grams.
Speaking to Geo.tv, AA Commodities Director Adnan Agar said that rising commodity prices in the international market and slight depreciation in the rupee are the reason behind a massive jump in local bullion prices.
Moreover, the high inflation rate has badly hit the purchasing power of people, hence the local demand for the precious commodity has dropped despite the wedding season.
Going forward, Agar predicted that the price of gold will increase further.
Gold is once again attracting safe-haven investment.
Investors who used to pour money into foreign currencies, particularly in the US dollar to avoid the impact of inflation, are now buying gold because the government and the central bank have tightened regulations pertaining to the purchase of foreign currencies in the open market.
Past practices suggest that people used to take aggressive positions in gold in inflationary days.
“International gold prices, however, are rising at a slower pace due to concerns regarding US monetary policy tightening due in November,” Agar said.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,420 per tola and Rs1,217.42 per 10 grams.