Price settles at Rs183,700 per tola after Rs300 rise.
Gold price recovers in Pakistan after steep decline as inflation fear persists. Gold recovered after dipping below the key Rs188,000 level a day earlier and registering its worst fall in the last few months as bleak economic data underscored concerns over an economic slowdown.
On Thursday, gold crashed as much as Rs5,200 per tola, however, it resumed its uptrend on Friday.
Data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold rose by Rs300 per tola and Rs257 per 10 grams to settle at Rs183,700 and Rs157,493.
A majority of the buyers comprise gold investors these days. Earlier, they were parking their savings in the US dollar to avoid the impact of rupee devaluation at a time of high inflation.
More From FactFile: Gold price breaks 12-day-long winning streak in Pakistan
They moved to the bullion market following the dollar shortfall in the open market. Illegal traders were selling the dollar for Rs250-260 in the black market compared to Rs227 in the interbank market.
Analysts believe the decline registered a day earlier was a healthy correction, it allows more people to get in, so prices started rallying again.
Meanwhile, goldsmiths anticipate that the price of gold may rise to Rs200,000 per tola due to the rupee devaluation against the US dollar under the current cycle.
However, they also believe that an inflow of $6-8 billion from multilateral and bilateral creditors will burst the pricing bubble in Pakistan.
In the international market, the gold price settled at $1,839 after a decline of $9 per ounce.
Meanwhile, silver rates decreased by Rs30 per tola to reach a record high of Rs2,100 in the country. The price of 10-gram silver also declined by Rs25.72 to Rs1,800.41.
