Gold gains Rs1,300 per tola in Pakistan as inflation risks boost safe-haven appeal

• Gold price settles at Rs138,600 per tola.
• The yellow metal is considered a hedge against higher inflation.
• Silver prices in domestic market remain unchanged.

KARACHI: Gold prices climbed by Rs1,300 per tola on Thursday, supported by inflation worries and lingering political risks, as markets awaited key economic data for cues on the upcoming budget for the next fiscal year 2022-23.

Uncertain economic conditions sparked a flight from risky commodities toward safer ones; consequently, prices in the local bullion market recorded an increase of Rs1,300 per tola and Rs1,112 per 10 grams to settle at Rs138,600 per tola and Rs118,827 per 10 grams.

A day earlier, the yellow metal closed at Rs137,300 per tola and Rs117,713 per 10 grams.

Gold is considered a hedge against higher inflation and a safe store of value in times of uncertainty.

In the international market, the price of yellow metal rose by $25 per ounce to settle at $1,856.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,570 and Rs1,346.02 today.