KARACHI: According to data from the All-Pakistan Sarafa Gems and Jewellers Association, the price of gold remained unchanged at Rs214,600 per tola and Rs183,985 per 10 grams, respectively, in Pakistan on Saturday.
Despite a slight dip due to the recovery of the rupee against the dollar, the precious metal’s appeal as a hedge against inflation and the depreciating rupee has kept its rates close to record highs.
The gold price rose by Rs5,100 per tola during the week ended April 8, and the Pakistani gold market is currently cheaper than the global market by Rs7,000 per tola.
Meanwhile, silver prices in the domestic market remained unchanged at Rs2,450 per tola and Rs2,100.48 per 10 grams.
In the international market, the gold price remained unchanged at $2,008 per ounce.
The yellow metal is often hailed as a hedge against inflation, and the commodity’s rate is hovering around a historic high after Pakistan’s monthly inflation in March soared to an all-time high level — 35.4% — from a year earlier.
Gold price moves in line with the rupee-dollar parity as the country meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country.
Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.
The association also mentioned that the price of gold is Rs7,000 per tola “undercost” in Pakistan, compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global.