Rising Gold Prices and Weakening Rupee: Concerns in Pakistan

Gold prices in Pakistan have continued to rise, causing concern among consumers and investors. On Saturday, the per tola price of 24 karat gold increased by Rs.200, reaching Rs.214,600, compared to its previous rate of Rs.214,400. Similarly, the price of 10 grams of 24 karat gold went up by Rs.172 to Rs.183,985 from Rs.183,813, while 10 grams of 22 karat gold saw an increase to Rs.168,653 from Rs.168,496, according to the All Sindh Sarafa Jewellers Association.

Despite this increase in gold prices, the cost of silver remains unchanged, with the per tola and ten-gram prices remaining at Rs.2,580 and Rs.2,211.93, respectively. It’s worth noting that the international market also witnessed a rise in gold prices, climbing by to ,012 from ,005.

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 The value of the US dollar has appreciated against the Pakistani rupee. In interbank trading, the dollar gained Rs 3.84, moving from Rs.280.57 to Rs.284.31 during the week. In the open market, the US currency experienced a similar increase, rising by Rs.3.50 to close at Rs.285, compared to the previous rate of Rs.281.50.

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The surge in gold prices is not unique to Pakistan; other foreign currencies are also strengthening against the Pakistani rupee This overall trend suggests that the Pakistani rupee is currently weakening in comparison to foreign currencies, which may impact various aspects of the economy.