Gold price in Pakistan soared to an all-time high at Rs214,500 per tola (11.66 grams) on Tuesday after the rupee fell to a historic low against the US dollar in the interbank trade.
The surge was in line with the rupee movement — which plunged to an all-time low of Rs287.29 against the US dollar in the interbank market — and an uptrend in the global markets.
According to the data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) soared by Rs5,000 per tola and Rs4,288 per 10 grams to settle at Rs214,500 and Rs183,900.
Gold is often hailed as a hedge against inflation—increasing in value as the purchasing power of the dollar declines.
Pakistan’s monthly inflation blew past forecasts in March and soared to a nearly all-time high level — 35.4% — from a year earlier, with people feeling more pain from some of the fastest rising consumer prices amid straining budgets as cost of living continues to outstrip average incomes.
Cumulatively, the precious commodity gained Rs5,200 per tola during the two sessions (Monday-Tuesday).
Investors’ attention shifted towards the precious commodity during the week as the economic tensions continue to rise amid the International Monetary Fund (IMF) reviewing external financing commitments from friendly countries before it releases bailout funds.
The delay in the revival of the programme negatively impacted the currency market which in turn is bolstering demand for gold.
Gold price moves in line with the rupee-dollar parity as the country meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country.
Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.
Moreover, a hike in seasonal demand added fuel to the rising prices in the local bullion market.
The association also mentioned that the price of gold is Rs7,000 per tola “undercost” in Pakistan, as compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global.
Meanwhile, silver prices in the domestic market jumped to an all-time high of Rs2,450 per tola and Rs2,100.48 per 10 grams after an increase Rs100 per tola and Rs85.74 per 10 grams, respectively.
In the international market, gold price gained $12 per ounce to settle at $1,982.
In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.
The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.
In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.
Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.
The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.
In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.
According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.
Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.
His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.
At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.
Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.
With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.
On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.
The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.
Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.