Business Desk 
Apr 16, 2024
Gold scaled to a new peak on Tuesday as speculations regarding the International Monetary Fund (IMF) bailout programme clouded the economic outlook and bolstered bullion’s safe-haven allure, though analysts said the rapid pace of gains could prompt some correction.
The price of gold surged by Rs2,400 per tola and Rs2,057 per 10 grams to settle at Rs249,700 and Rs214,077, respectively, the data released by All Pakistan Sarafa Gems and Jewellers Association showed.
The precious commodity has emerged as a safe asset during the recent economic crisis and, as a result, people have been aggressively buying it to protect their cash from deflation. Moreover, an increase in the demand for the precious commodity ahead of wedding season triggered an increase in the price.
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In the international market, gold price gained $20 per ounce to settle at an all-time high of $2,391 as concerns over rising geopolitical tensions between Iran and Israel propped up demand for the safe-haven metal.
Gold has got another leg of support from the latest round of Middle East headlines, but it was gaining even before that with central bank purchases and rising inflation expectations also supporting the rally - meaning that gold is behaving like an inflationary hedge once more, City Index senior analyst Matt Simpson said.
Gold price in Pakistan is announced by the association, which determines gold prices in Pakistan for local markets six days a week from Monday to Saturday.
Meanwhile, silver price in the international market remained unchanged in the local market settling at Rs2,650 per tola and Rs2,271.94 per 10 grams.
Pakistan is a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the precious metal locally.
Accordingly, the gold rate in Pakistan is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets. The latest price for local markets was determined to keep in view the prices at which trade took place among buyers and sellers.
Gold price in Pakistan has been volatile in Pakistan recently amid continued political and economic uncertainty and high inflation. People prefer to buy this precious commodity in such times as a safe investment and a hedge.
Local dealers believe that the return of inflationary days in Pakistan and worldwide has once again invited investors’ attention towards the yellow metal as safer commodities become attractive at such a time.
On the physical side, demand for gold in Pakistan recently picked up pace as some consumers bought into a retreat in domestic prices as the wedding season kickstarts.
