Gold prices held their ground in Pakistan on Saturday; however, continued to trade near record highs marked earlier this week as the precious metal’s appeal as a hedge against a depreciating rupee remained intact.
Data released by All-Pakistan Sarafa Gems and Jewellers Association showed that the gold price (24 carats) remained unchanged at Rs214,600 per tola and Rs183,985 per 10 grams, respectively.
The price of gold rose by Rs5,100, or 2.43%, per tola during the week ended April 8.
The precious commodity explored several new peaks and touched an all-time high of Rs217,000 per tola; however, the meagre recovery of the Pakistan rupee against the dollar during the last two sessions pulled the prices of the yellow metal down.
The yellow metal is often hailed as a hedge against inflation and the commodity’s rate is hovering around a historic high after Pakistan’s monthly inflation in March soared to an all-time high level — 35.4% — from a year earlier.
Gold price moves in line with the rupee-dollar parity as the country meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country.
Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.
The association also mentioned that the price of gold is Rs7,000 per tola “undercost” in Pakistan, compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global.
Meanwhile, silver prices in the domestic market remained unchanged at Rs2,450 per tola and Rs2,100.48 per 10 grams.
In the international market also, gold price remained unchanged at $2,008 per ounce.