Gold Rate, Gold Price in Pakistan Today -6, May, 2023.
On Saturday, gold prices rose in Pakistan after weekly inflation reached an all-time high the day before. The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) has reported that the cost of gold (24 carats) surged to new heights, with an increase of Rs500 per tola and Rs429 per 10 grams, reaching Rs225,500 and Rs193,330, respectively.
This increase occurred despite the international market’s decline in the value of gold by $19, settling at $2,017 per ounce.
Rising bullion rates in Pakistan due to economic fundamentals, rupee depreciation and record-high inflation
Pakistan has been experiencing a steady increase in bullion rates due to weakened economic fundamentals, a depreciating rupee and soaring inflation. In such circumstances, people prefer to buy gold to protect themselves against inflation and currency depreciation.
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 inflation rate of 35.3% in the previous month. Additionally, weekly inflation during the seven-day period ending on May 4 hit an all-time high, reaching 48.35% year-on-year, as the prices of chicken and wheat flour continued to increase.
Delays in IMF programme revival impact currency market, boosting demand for gold
Meanwhile, talks between the government and the International Monetary Fund (IMF) for a crucial economic bailout have been stalled for months. The delay in the revival of the IMF programme has had a negative impact on the currency market, which has bolstered demand for gold.
Silver prices slightly decrease
Data shared by the APSGJA also showed that the price of silver decreased slightly from the record high reached the day before. The rate of silver decreased by Rs80 per tola and Rs68.58 per 10 grams to settle at Rs2,870 and Rs2,460.56, respectively.