Gold rate sees minor slide from record high

The price of gold in Pakistan decreased slightly Friday from an all-time high reached yesterday after the rate declined in the international market.

However, the price of silver increased to a record high.

The price of gold (24 carats) declined by Rs100 per tola and Rs86 per 10 grams to reach Rs218,700 and Rs187,500, respectively, according to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The price of gold in the international market decreased by $17 to settle at $1,984 per ounce.

The gold rate has been on a steady uptrend in Pakistan, as economic fundamentals weakened, the rupee depreciated and inflation soared to record highs. During such times, people prefer to buy the precious metal to protect themselves against inflation and currency depreciation.

The rupee had fallen to an all-time low of Rs288.43 against the US dollar in the interbank market on April 11. While it has recovered since then, the US dollar continues to trade above Rs280.

On Friday, the rupee gained Re0.08 or 0.03% against the US dollar in the interbank market, data released by the State Bank of Pakistan showed.

Another reason for the increased gold demand is the delay in an agreement with the IMF for a desperately needed economic bailout, without which the country risks default.

The delay in the revival of the IMF programme negatively impacts the currency market which, in turn, bolsters the demand for gold.

Data shared by the association showed that the price of silver rose by Rs30 per tola and Rs25.72 per 10 grams to reach Rs2,600 and Rs2,229.08, respectively.