Gold soars to Rs240,000 per tola in Pakistan as investors seek safe haven

Gold prices in Pakistan skyrocketed to a historic high of Rs240,000 per tola on Wednesday, with 24 karat gold witnessing a massive increase of Rs9,900.

The surge in gold prices can be attributed to the prevailing political uncertainty in the country and the sharp depreciation of the Pakistan Rupee (PKR) against the US dollar.

The price of 24 karat gold per 10 grams rose by Rs8,487, reaching Rs205,761, while 22 karat gold per 10 grams reached Rs188,615. Industry experts believe that investors, in the wake of the arrest of former Prime Minister Imran Khan, turned to gold as a safe haven for their investments.

The significant increase in gold prices can also be linked to the all-time low of the PKR against the US dollar, with the rupee falling to a historic low of PKR 290.22 to the dollar at the interbank closing on May 10, 2023.

In international markets, gold prices remained unchanged, standing at $2,031 per ounce.

Meanwhile, silver also experienced an upward trend, with 24 karat silver per Tola recording an increase of Rs100, reaching a record high of Rs3,100. The rate of silver per 10 grams in 24 karat also rose by Rs85.75, reaching Rs2,657. In the international market, the price of silver was recorded at $25.61.

The surge in gold and silver prices reflects the cautious approach of investors amidst the political and economic uncertainties in the country. As investors seek safe havens for their funds, gold and silver have emerged as attractive options due to their historical value and stability.

The fluctuating political landscape and the depreciation of the Pakistani Rupee are likely to continue impacting the prices of precious metals in the near future.

Investors and industry analysts will closely monitor these developments to assess the potential implications for the local and international markets.