KARACHI: The ongoing political uncertainty in Pakistan, triggered by the arrest of Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan, has led to a surge in gold prices, reaching another all-time high.
The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported that the rate of gold (24 carats) increased by Rs3,200 per tola and Rs2,744 per 10 grams to reach Rs230,100 and Rs197,274, respectively.
Market experts attribute today’s rise to Khan’s arrest, which comes as the country’s loan programme with the International Monetary Fund (IMF) remains stalled.
The delay in the revival of the IMF programme negatively impacts the currency market, leading to a bolstering of the demand for gold.
With the economy in dire straits, the population is increasingly turning to the precious metal as a safeguard against inflation and currency depreciation.
The price of silver has also hit record highs, with an increase of Rs100 per tola and Rs85.72 per 10 grams to settle at Rs3,000 and Rs2,572, respectively.
The weekly inflation rate reached an all-time high of 48.35% year-on-year, with prices of chicken and wheat flour increasing during the seven-day period ending May 4.