Gold price jumps by Rs3,550 per tola in Pakistan

• Gold price settles at Rs146,150 per tola.
• Inflationary days have invited investors’ attention towards gold.
  
• Silver prices in domestic market remain unchanged.
  

KARACHI: In line with rising inflation and rupee depreciation, the price of gold in Pakistan jumped by 2.48% per tola boosted by concerns regarding uncertain economic conditions which have sparked a flight from risky commodities towards safer ones.

Gold — which is considered a reliable inflation hedge — is considered one of the safest investments and as the dollar strengthened, investors' confidence in the currency once again tumbled and they diverted their investment to gold.

Data released by the All Sindh Sarafa and Jeweller Association showed that the price of gold increased by Rs3,550 per tola and Rs3,044 per 10 grams to settle at Rs146,150 and Rs125,300 per 10 grams.

Local dealers believe that the return of inflationary days in Pakistan and around the world have once again invited investors’ attention towards the yellow metal as at such a time, safer commodities become attractive.

Last week the price of gold recorded an overall gain of Rs4,100, or 2.96%, per tola.

It should be noted that the gold price is standing below cost. Gold is cheaper by Rs3,000 per tola compared to its price in Dubai.

In the international market, bullion prices declined by $18 per ounce to settle at $1,729 — lowest level in nearly four weeks — as expectations of more interest rate hikes by the US Federal Reserve fuelled a rally in the dollar and took the shine off bullion.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,540 per tola and Rs1,320.30 per 10 grams today.