Gold races to record high levels as price surges by Rs3,000 per tola

KARACHI: Gold in Pakistan continued to race towards record-high levels as the price jumped by nearly 2% on Monday due to the economic uncertainties brewing as a result of the devastations caused by the catastrophic flash floods.
Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold has jumped by Rs3,000 per tola and Rs2,572 per 10 grams to Rs156,000 and Rs133,745 in Pakistan on Monday.
Cumulatively, the price of yellow metal surged by Rs7,300 per tola during the week ended September 10. The association determines local prices based on rupee-dollar parity at the open market – as the association members finance gold imports by buying dollars from the open market – and international rates. In Pakistan, it seems that the larger the depreciation in the rupee at domestic “open markets” – compared to the interbank markets – the higher the price of gold. It should be noted that the rupee has depreciated by over 10% in the current fiscal year 2023 (July 1, 2022 to date) to Rs229.82 against the US dollar at the interbank market. – PNP