Floods and inflation: Gold price jacks up by Rs3,050 per tola in Pakistan

Karachi: Triggered by flood-stricken economy and rising inflation, the prices of gold continued to surge in the local bullion markets on Tuesday.

The All Sindh Sarafa and Jewellers Association (ASSJA) said the price per tola gold settled at Rs151,150. Meanwhile, the price rose by Rs2,615 per gram to settle at Rs129,587.

The yellow metal cumulatively gained Rs12,150 per tola since the last five sessions (Thursday-Tuesday). 

High inflation, constant fluctuations in rupee-dollar parity and damages done by devastating floods are limiting the gains in gold.

Investors are now showing intertest in buying gold rather investing in foreign currencies because the government and the central bank are trying to reduce the rupee-dollar parity.

In the international market, the price of yellow metal, however, decreased by $3 per ounce to settle at $1,711.

Gold rates in Pakistan are around Rs4,000 below the cost compared to the rate in the Dubai market.

Furthermore, silver prices in the domestic market remained unchanged at Rs1,480 per tola and Rs1,268.86 per 10 grams.