Gold Rate, Gold Price in Pakistan Today -3, May, 2023 .
Gold prices reached yet another all-time high in Pakistan on Wednesday as the country continues to grapple with a gloomy economic outlook and persistent inflation.
Data from the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) indicated that the rate of gold (24 carats) rose by Rs1,700 per tola and Rs1,457 per 10 grams to reach Rs222,700 and Rs190,929, respectively.
The steady upward trend in gold prices is largely attributed to weak economic fundamentals, depreciation of the rupee, and soaring inflation, which has hit record highs. People often invest in gold during such times to protect themselves against currency depreciation and inflation.
In April, inflation reached a record high of 36.4% year-on-year, making Pakistan the country with the fastest-rising prices in Asia, even surpassing Sri Lanka’s 35.3% inflation rate in the previous month. Another factor contributing to the surge in gold demand is the delay in an agreement with the International Monetary Fund (IMF) for an urgently needed economic bailout. Without the bailout, the country risks defaulting. The delay in the IMF programme’s revival negatively impacts the currency market and, as a result, bolsters the demand for gold.
In the international market, the price of gold rose by $25 to reach $2,015 per ounce. APSGJA shared that the price of silver also rose by Rs20 per tola and Rs17.15 per 10 grams to settle at Rs2,750 and Rs2,357.68, respectively, which were also record highs.