Gold price in Pakistan on Wednesday registered gains after the economic crisis-hit country witnessed record-high inflation in January — pushing investors towards the safe-haven metal.
Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) increased by Rs3,500 per tola and Rs3,000 per 10 grams to settle at Rs205,000 and Rs175,754, respectively.
The surge in the gold rate comes as the demand increased after the investors moved towards the yellow metal as Pakistan’s headline inflation accelerated to a record high level in January amid supply constraints for food products and a significant surge in the price of petroleum products.
Investors were, however, purchasing only gold bars, not jewellery, which had not only reduced goldsmiths’ profit margins but the labour force was also at the stake of losing jobs, as jewellery makers were moving towards other professions in absence of work.
International gold prices ticked lower today as investors kept to the sidelines ahead of the US Federal Reserve’s policy decision on its interest rate path due later in the day.
Spot gold increased $27 to $1,929.26 per ounce as of 0929 GMT, after falling to its lowest since January 19 in the previous session. US gold futures fell 0.3% to $1,939.70.
Meanwhile, silver prices in the domestic market remained stable and settled at Rs2,250 per tola and Rs1,929 per 10 grams, respectively.
