Amid continued political turmoil in Pakistan, the rate of gold — which is considered safe-haven bullion — rose sharply Wednesday.
The rate of gold (24 carats) jumped by Rs9,900 per tola and Rs8,487 per 10 grams to settle at Rs240,000 and Rs205,761, respectively, according to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
The rate of gold in the international market remained unchanged at $2,031 per ounce.
While the previous metal’s value has been rising sharply recently, with its price reaching a new high almost every day, the primary reason for the latest jump is the new political storm that has erupted after Khan’s arrest. There have been violent protests across the country and the army has been deployed in three provinces.
With the economy already in dire straits, people prefer to buy yellow metal to protect themselves against inflation and currency depreciation.
The weekly inflation hit an all-time high of 48.35% year-on-year (YoY) with prices of chicken and wheat flour increasing during the seven-day period ending May 4.
Meanwhile, it seems that Pakistan may not get a crucial tranche from the International Monetary Fund (IMF) anytime soon, as the country’s loan programme is not on the agenda of the lender’s Executive Board till May 17.
The delay in the revival of the IMF programme negatively impacts the currency market which, in turn, bolsters the demand for gold.
The rupee also fell to a fresh low of Rs290.22 against the US dollar in the interbank market Wednesday after losing Rs5.38 or 1.89%.
Data shared by the association also showed that the price of silver hit a new high after it increased by Rs100 per tola and Rs85.75 per 10 grams to settle at Rs3,100 and Rs2,657.7, respectively.