Canada Global (Web News) Monday, gold prices increased in Pakistan, following worldwide trends and possibly being boosted by a declining rupee, which makes the dollar-quoted safe-haven commodity more expensive and forces dealers to be more cautious on the eve of a monetary policy meeting.
The price of gold (24 carats) increased by Rs 1,200 per tola and Rs 1,028 per 10 kilos to settle at Rs 209,500 and Rs 164,645 respectively, according to All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).
On Monday, the rupee lost 0.44% of its value against the dollar in the interbank market. The rupee ended up at 285.04 with a loss of Rs1.25, according to the State Bank of Pakistan (SBP).
With the out-of-control inflation, it is anticipated that the State Bank of Pakistan will increase the policy rate by 100 to 200 basis points. Pakistan’s consumer price inflation increased by a record 35.37% in March compared to the same month last year.
Since gold increases in value as the value of the dollar declines, it is typically touted as a powerful hedge against inflation.
Pakistan’s monthly inflation blew past predictions in March and soared to a nearly all-time high level — 35.4% — from a year earlier. People are now suffering more as a result of some of the fastest rising consumer prices and tightening budgets as the cost of living continues to outpace average incomes.
The policy rate was increased by the central bank by 300 basis points to 20% last month.