• Tue. May 23rd, 2023

Gold price surges to record high, again


May 15, 2023 , , , ,

A representational image of gold jewellery. — AFP/File
A representational image of gold jewellery. — AFP/File

As the economic prospects of the country remain gloomy amid a stalled International Monetary Fund (IMF) bailout programme, gold prices jumped to another record high in Pakistan.

The rate of gold (24 carats) increased by Rs1,400 per tola and Rs1,200 per 10 grams to reach Rs226,900 and Rs194,530, respectively, according to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The rise in the gold price also came as the precious metal’s value increased in the international market by $5 to settle at $2,022 per ounce.

Gold prices ticked up as the dollar eased and economic risks prevailed, while investors prepared for US inflation data to gauge the Federal Reserve’s policy path.

The bullion rate has been on a steady uptrend in Pakistan, as economic fundamentals weakened, the rupee depreciated and inflation soared to record highs. During such times, people prefer to buy the yellow metal to protect themselves against inflation and currency depreciation.

There has been no relief for the masses as 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 the crucial tranche from the IMF anytime soon, as the country’s loan programme is not on the agenda of the lender’s Executive Board till May 17.

Pakistan and the IMF have been discussing fiscal policy measures in the review since February, aiming to resume stalled funding of $1.1 billion due in November from a $6.5-billion programme agreed in 2019.

The delay in the revival of the IMF programme negatively impacts the currency market which, in turn, bolsters the demand for gold.

Data shared by the association also showed that the price of silver hit record highs after they increased by Rs30 per tola and Rs25.72 per 10 grams to settle at Rs2,900 and Rs2,486.28, respectively.

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