Gold prices registered an increase with soaring demand for the metal. WealthPK learnt through data released by All Sindh Sarafa Association that the gold price in Pakistan surged by Rs2,000 per tola and Rs1,715 per 10 grams to settle at Rs141,000 and Rs120,885. An increase of over 1.43% per tola ended the four-day losing streak of the yellow metal during which the price of gold declined by Rs8,100 in the local market.

Pakistan’s consumer price index-based inflation surged to a multi-decade high of 27.3% in August which pushed the gold price to a one-and-a-half-year-high. The asset reversed its downtrend as high inflation boosted its charm.

Gold is considered a hedge against inflation but interest rate hikes raise the opportunity cost of holding non-yielding bullion. In the international market, the price of yellow metal plunged by $13 per ounce to settle at $1,702, sources told WealthPK. Gold prices briefly slid below the key $1,700 psychological level for the first time in six weeks as major central banks stuck to an aggressive stance to combat inflation.

The gold price stands below cost and is cheaper by Rs3,000 per tola compared to Dubai. On the other hand, silver prices in the domestic market plummeted by Rs50 per tola and Rs42.87 per 10 grams to settle at Rs1,470 per tola and Rs1,260.28 per 10 grams.

Credit : Independent News Pakistan-WealthPk