Gold prices set a new high on Thursday, rising by Rs1,800 per tola in a day to surpass its previous all-time high, according to All Sindh Saraf and Jewellers Association.
The precious metal is now trading at Rs77,300 per tola, which is Rs1,400 more than its previous high, according to the data compiled by ASSJA. Last Friday, gold prices witnessed their biggest increase in a day when they rose by Rs2,700 to reach Rs75,900 per tola, then its highest rate ever.
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 been on the rise since the opening of the market following Eid holidays. In June alone, it increased by Rs8.5 against the rupee to reach an all-time high of Rs157.5 in the open market. The rise of 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 was trading at $1,381 per ounce in the international market.
Gold price in the country has been hitting a new high very frequently since the beginning of this year. Last year, gold prices increased 20%, according to the data compiled by the Pakistan Bureau of Statistics (PBS). This rise in the gold price was in line with international prices, which also increased last year. The upward trend continues in 2019.