LAHORE– Pakistan witnessed historic Rs4,200 increase in per tola gold price on Tuesday.
Gold prices in the local bullion market recorded an increase of Rs4,200 per tola and Rs3,600 per 10 grams to settle at Rs132,000 per tola and Rs113,168 per 10 grams.
A significant depreciation of the rupee against the US dollar is believed to be the primary reason behind the spike given that Pakistan meets its demand for the precious metal through imports.
Meanwhile, stock market participants are diverting investment to gold because the bourse is experiencing selling pressure due to overheating of the economy.
Gold is once again attracting safe-haven investment. Analysts suggest that people usually take positions in gold during inflationary times and at present inflation is the largest challenge in Pakistan.
