The prices of gold in Pakistan continued their rise from the last week, in contrast to the rupee which has been on a weeklong losing streak against the greenback, raising the appeal of gold as a safe asset.
According to the data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold increased by Rs. 400 per tola to Rs. 158,500 and Rs. 343 per 10 grams to settle at Rs. 135,888.
This rise in gold price is directly linked to the continuous depreciation of the rupee against the US dollar, which touched Rs. 231 in the open market today, boosting the demand for gold as it is considered a secure asset in times of uncertainty.
Since Pakistan does not produce gold locally and meets the local demand through imports, the price of the commodity is determined in accordance with the global market, supply and demand in the domestic markets, and the exchange rate.
However, the prices of silver in the domestic market have remained stagnant at Rs. 1,690 per tola and Rs. 1,448.90 per 10 grams.