Gold breaks all previous records in Pakistan

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news desk
KARACHI
Following an increase of Rs600 per tola, gold prices in Pakistan broke all previous records and touched a new high on Saturday.
It hit a fresh all-time high of Rs139,300 per tola (11.66 grams) in Pakistan today, providing protection to investors from rupee depreciation.
According to the All Sindh Sarafa Jewellers Association (ASSJA), the price of gold per 10 grams rose by Rs514 to settle at Rs119,427.
Gold has emerged as a safe asset during the ongoing economic crisis and, as a result, people have been aggressively buying it to protect their cash from deflation.
The drop in the rupee value, which breached the 200 mark in the interbank market during the week, forced the gold-trading body to revise the bullion price significantly as Pakistan meets the local demand for the precious yellow metal through imports.
Cumulatively, the safe-haven asset gained Rs3,400 per tola in the domestic market during the week that ended on May 21.
Earlier, commenting on the rising prices, a gold dealer had said that the metal remains a safe haven against inflation (rupee depreciation and increase in essential commodity prices) and people invest in gold to avoid the impact of the devaluation of the local currency.
He predicted that the gold price will continue to hover at a high level along with the depreciating rupee as the US dollar hits a double century against the Pakistani rupee.
However, despite the wedding season, the demand in the market remains subdued due to a lack of purchasing power.
In the international market, the price of yellow metal recorded an increase of $4 per ounce to settle at $1,847.
Gold rates in Pakistan are around Rs2,000 below the cost compared to the rate in the Dubai market. Meanwhile, silver prices in the domestic market remained unchanged at Rs1,570 and Rs1,346.02 today.