KARACHI: The prices of gold elevated in the local market to an all-time high of Rs136,600/tola on Monday on the back of the rupee depreciation.
Gold 24kt gained Rs700/tola and Rs600/10 grammes in the local market to hit Rs136,600/tola and Rs117,112/10 grammes, respectively.
The precious metal recorded the previous all-time high of Rs136,000/tola on May 12, 2022, as Pakistan’s forex reserves, widening trade deficit and uncertainty regarding the International Monetary Fund (IMF) loan programme kept the local currency under pressure.
The rupee declined to a record low of Rs194.18 against the dollar on Monday due to panic buying of the greenback, as it continued to climb against the rupee, coupled with increasing demand for the foreign currency for external and import payments.
The traders and investors’ confidence was shaken on the government’s decision to sustain the subsidy on the prices of fuel and electricity, in contrast with the prior conditions set by the International Monetary Fund (IMF) for the revival of talks for the Extended Fund Facility (EFF) programme.
Pakistan is in a dire need of funds to upscale its forex reserves, which are on a 22-month low, amid lower growth in exports and rising import bill due to a hike in the global commodity prices.
However, silver remained unchanged at Rs1,560/tola and Rs1,337.44/10 grammes, respectively, while the international silver prices were recorded at $21.13/ounce.
However, the price of gold in the international market declined $14/ounce to $1799/ounce.
Pakistan’s foreign exchange reserves dropped to their lowest level since December 2019 at $16.3 billion in the week ended May 6, 2022.
The country’s forex reserves declined $178 million to $16.376 billion. The foreign exchange reserves held by the central bank decreased by another $190 million to $10.31 billion.