Gold sees highest single-day rise of Rs10,500 as bullion price hits historic high

• Gold price rise to a fresh record high of Rs162,500 per tola.
• Price surges by Rs17,500 in the last seven sessions.
• Analyst predicts precious commodity to maintain an uptrend.

KARACHI: Gold price rose to a fresh record high of Rs162,500 per tola on Thursday — after recording a single-day highest rise of Rs10,500 — with investors scurrying for a safe haven after a softening currency and bleak economic data underlined the shaky pace of growth.

Data released by the All Sindh Saraf and Jewellers Association (ASSJA) showed that the price of gold, considered a safe haven, soared from Rs9,003 per 10 grams to Rs139,318 in the local market.

With the latest increase of Rs10,500 per tola today, the gold price has surged by a whopping Rs17,500 in the last seven sessions.

“Gold price is climbing high in the local bullion market in line with the prices in the international market — which has surged by $50 per ounce since Monday — and depreciation of Pakistani rupee against the US dollar,” AA Commodities Director Adnan Agar told Geo.tv.

The analyst further said that the precious commodity is expected to maintain an uptrend as international prices are once again eyeing a $1,800 mark while there is “no hope of stability in local currency” till the country receives a loan tranche from the International Monetary Fund (IMF).

The association, however, stated that although gold hit an all-time high in Pakistan, its price still stood below cost. Gold is cheaper by Rs7,000 per tola compared to its price in Dubai.

The latest price for local markets was determined to keep in view the prices at which trades took place among buyers and sellers.

Meanwhile, ASSJA President Haji Haroon Chand, in a video message, lamented that their businesses are suffering because of a lack of purchasing power; while the government has also imposed fixed taxes on gold dealers which is also adding to the woes of the dealers.

The bullion price is going up for the last many days. Besides, the international currency; the US dollar is strengthening globally. And the local currency (versus the US dollar) has continued to depreciate.

In the international market, bullion prices increased by $29 per ounce to settle at $1,750 after US Federal Reserve chair Jerome Powell signalled the central bank could slow the pace of rate hikes in the coming months.

Meanwhile, silver prices in the domestic market rose by Rs30 per tola and Rs25.72 per 10 grams to settle at Rs1,630 per tola and Rs1,397.46 per 10 grams today.