Gold prices set another high on Wednesday, rising by Rs500 per tola to reach Rs81,000 per tola, according to the All Sindh Sarafa and Jewellers Association.
The precious metal is trading at its highest level in the country’s history. Gold prices have been on the rise for many months now. Since July, 2018, gold has become Rs21,500 more expensive, according to the ASSJA. This was in line with international gold prices, which increased by $178 per ounce in the same period.
The prices compiled by the ASSJA come with a lag of a day after changes in international prices. Pakistani traders adjust gold prices based on price movements in the international market and fluctuation in the dollar rates as well as market forces of demand and supply.
The dollar has also been increasing for the past many months, setting a new high every few weeks. Earlier in the day, the greenback reached its new all-time high of Rs163 in the open market. The rise of the dollar explains much of the corresponding increase in gold prices, which depend on international gold prices as well as exchange rates. When this report went online, gold futures were trading at $1,404 per ounce in the international market.
Gold prices in the country have been hitting a new high very frequently since the beginning of this year. On many occasions, prices rose by more than Rs1,000 per tola in a single day. Last year, gold prices increased by 20%, according to data compiled by the Pakistan Bureau of Statistics (PBS). This rise was in line with international prices, which also increased last year. The upward trend continues in 2019.