Gold rate takes a massive hike, after rupee’s massive decline

The price of gold per tola in Pakistan increased dramatically by 4.77% after the Pakistani rupee experienced a historic decline against the US dollar as investors’ focus once again turned to the pricey metal thought of as an inflation hedge.

The price of gold (24 carats) increased by Rs9,400 per tola and Rs8,058 per 10 grams to settle at Rs206,500 and Rs177,040, respectively, according to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). When compared to the Dubai market, the price of gold in Pakistan is Rs 3,000 per tola, which indicates that the local market is currently more affordable than the international one.

It is pertinant to mention that Pakistan imports almost all of the gold it needs, and local traders set their prices in accordance with international market rates. The metal is imported by jewelers, who first exchange its value into US dollars and UAE dirhams. The precious metal increased by Rs12,400 per tola over the course of the last three sessions, reversing the trend that had been observed the week prior, when gold had decreased by Rs1,900 per tola.