The price of gold witnessed its biggest increase in a day as it rose by Rs2,700 on Friday to reach a new all-time high of Rs75,900 per tola.
According to All Sindh Saraf and Jewellers Association, gold prices rose by 3.7% on Friday as compared to the previous day’s rate of Rs73,200 per tola.
The prices compiled by the association come with a lag of a day after changes in international prices. Pakistani traders adjust gold prices based on movements in the international market and fluctuation in the dollar rates as well as market forces of demand and supply.
The dollar has been on the rise since the opening of the market following Eid holidays. In June alone, it has increased by Rs8.5 against the rupee to reach an all-time high of Rs157.5 in the open market. The rise of the dollar explains much of the corresponding increase in gold prices, which depend on international prices as well as exchange rates. When this report went online, gold was trading at $1,355 per ounce in the international market.
The gold price in the country has been hitting a new high very frequently since the beginning of this year. The last time, it increased by Rs1,000 was on May 11 when a tola became Rs1,300 more expensive in one day. However, the price hike on Friday set a new record.
Last year, gold prices increased 20%, according to the data compiled by the Pakistan Bureau of Statistics. This rise in the gold price was in line with international prices.