Gold price touches new peak, price rises by Rs700 per tola

• Gold price in Pakistan settles at Rs136,600 per tola.
• In international market, price of gold decreases $14 per ounce.
• Silver prices in the domestic market remain unchanged.

KARACHI: Gold shined once again on Monday as the precious metal price rose Rs700 to an all-time high of Rs136,600 per tola due to the depreciation of the Pakistani rupee continued to explore new depths.

According to the All Sindh Saraf and Jewellers Association, the price of yellow metal had closed at Rs135,900 per tola on Saturday.

Last week, which ended May 14, the precious commodity gained Rs3,100 cumulatively.

Speaking to Geo.tv, AA Commodities Director Adnan Agar said that despite a constant decrease in international prices, the price of gold is recording new peaks.

"The price in the international market is decreasing because of expected monetary policy tightening in the US," he said, adding that the increase in interest rates is never a favourable situation for gold.

In the context of Pakistan, the analyst mentioned that even if the rupee bounces back against the US dollar, the gold prices will keep on fluctuating.

Gold has emerged as a safe asset in these challenging times of the economic crisis. People were aggressively buying gold to protect their cash from deflation.

In the international market, the price of yellow metal recorded a decrease of $14 per ounce to settle at $1,799.

Gold rates in Pakistan are around Rs1,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,560 per tola and Rs1,337.44 per 10 grams today.