KARACHI: In line with rising inflation and rupee depreciation, the price of gold in Pakistan jumped by 2.48% per tola boosted by concerns regarding uncertain economic conditions which have sparked a flight from risky commodities towards safer ones.
Gold — which is considered a reliable inflation hedge — is considered one of the safest investments and as the dollar strengthened, investors’ confidence in the currency once again tumbled and they diverted their investment to gold.
Data released by the All Sindh Sarafa and Jeweller Association showed that the price of gold increased by Rs3,550 per tola and Rs3,044 per 10 grams to settle at Rs146,150 and Rs125,300 per 10 grams.
Local dealers believe that the return of inflationary days in Pakistan and around the world have once again invited investors’ attention towards the yellow metal as at such a time, safer commodities become attractive.
Last week the price of gold recorded an overall gain of Rs4,100, or 2.96%, per tola.
It should be noted that the gold price is standing below cost. –Agencies
