Gold prices in Pakistan have taken a dip as the international market prices went down on Friday. The value of the safe-haven bullion has also declined in Pakistan. The price of gold (24 carats) per tola decreased by Rs6,500 and Rs5,573 per 10 grams, reaching Rs230,800 and Rs197,874, respectively. This data was provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
The yellow metal’s value hit a record high on May 10 amid increased political uncertainty and violence after the arrest of Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan.
Meanwhile, the international gold rate decreased by $33 to settle at $2,005 per ounce. This rate is expected to fluctuate during May due to uncertainties over the raising of the United States debt ceiling by Congress, according to analysts.
Gold prices in Pakistan have been consistently reaching new highs due to different factors, including economic and political turmoil, high inflation, and currency depreciation. In such times of instability, people choose to invest in gold as a safe investment and a hedge.
The Pakistani government has yet to sign a staff-level agreement with the International Monetary Fund (IMF) to release a crucial economic bailout, despite months of discussions. International agencies have warned that Pakistan risks default following the current loan program’s end, as the country’s foreign exchange reserves are at a critically low level. The devaluation of Pakistani currency is worsening the situation further. For instance, the rupee hit a new low of Rs300 against the US dollar on May 11.
Also, inflation has set a new record, as it is currently at the highest level in South Asia. These factors have contributed to violent protests that have been flaring up for days following the PTI chairman’s arrest.