Karachi: In response to the world market’s upward trend, the price of gold surged Rs 2,900 on Wednesday, reaching a new all-time high of Rs 287,900 per tola (11.66 grams).
However, in the interbank market, the value of the Pakistani rupee continued its downward trend for the third day in a row, slipping Rs 0.05 to a one-week low of Rs 277.79 versus the US dollar. Bullion surged $29 to a new record high of $2,784 per ounce (31.10 grams) on the global market, according to the All Pakistan Saraf Gems and Jewelers Association.
The spike in gold, seen as a safe-haven asset, occurs before the US central bank meets early next week to discuss lowering interest rates for the second time in four years. Any reduction in interest rates encourages investment in precious metals rather than bonds.
Also read: Gold Prices Hit Rs285,000 Per Tola in Pakistan Market
Furthermore, the increased political unpredictability in the US before the November presidential election led to a massive purchase of the precious metal because polls may favor either of the two candidates running for the office, Donald Trump and Kamala Harris, who were connected for the lead.
According to data from the State Bank of Pakistan (SBP), the Pakistani rupee has lost Rs 0.16 during the last three days due to increased demand for the US dollar and its comparatively slower supply.
Ishaq Dar, the former finance minister and deputy prime minister, asserted that the rupee’s fair value was less than Rs240/$, about Rs38 less than the current exchange rate.
Also read: Gold Rate in Pakistan Today
He attacked the International Monetary Fund (IMF) for suggesting that Pakistan adopt a market-based exchange rate, which led to needless devaluation of the native currency.
According to the Exchange Companies Association of Pakistan, the rupee finished at Rs 278.72/$ after depreciating Rs 0.06 daily on the open market.