The rate of gold soared to another all-time high in Pakistan Saturday as the country experienced record weekly inflation amid the ongoing economic turmoil.
The price of gold (24 carats) increased by Rs500 per tola and Rs429 per 10 grams to reach Rs225,500 and Rs193,330, respectively, data shared by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
The development came despite the precious metal’s value declining in the international market by $19 to settle at $2,017 per ounce.
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.
April inflation clocked in at 36.4% year-on-year — a record high. It means Pakistan has the fastest rising prices in Asia, beating even Sri Lanka where inflation was measured at 35.3% in the previous month.
Separately, weekly inflation hit an all-time high during the seven-day period ending May 4, rising to 48.35% year-on-year, as the prices of chicken and wheat flour continued to increase, official data showed.
Meanwhile, talks between the government and the International Monetary Fund (IMF) for a crucial economic bailout have been stalled for months.
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 showed that the price of silver receded slightly from a record high reached yesterday. The rate of silver decreased by Rs80 per tola and Rs68.58 per 10 grams to settle at Rs2,870 and Rs2,460.56, respectively.