The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) revealed that the price of 24-carat gold increased by PKR 1,700 per tola and PKR 1,457 per 10 grams, reaching PKR 222,700 and PKR 190,929, respectively. This consistent rise in gold prices has been attributed to the country’s deteriorating economic situation, devaluation of the rupee, and skyrocketing inflation. In such circumstances, individuals often turn to gold as a means of safeguarding against inflation and currency devaluation.
Pakistan experienced a record-breaking 36.4% year-on-year inflation rate in April, making it the nation with the highest inflation rate in Asia. Neighboring Sri Lanka followed closely with a 35.3% inflation rate the month prior.
The delayed agreement with the International Monetary Fund (IMF) for a much-needed economic rescue package has also contributed to the growing demand for gold. The postponement of the IMF program has negative repercussions on the currency market, further fueling gold’s appeal.
Concurrently, global gold prices have surged as well, with a $25 increase to $2,015 per ounce.
According to the APSGJA, silver prices have also reached all-time highs, with a PKR 20 per tola and PKR 17.15 per 10 grams increase, resulting in PKR 2,750 and PKR 2,357.68, respectively.