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Silver reaches a record high while the price of gold increases in Pakistan

On Monday, gold prices increased in Pakistan, following global trends and possibly being boosted by a declining rupee, which makes the dollar-quoted safe-haven commodity more expensive and forces traders to be extra 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 grammes to settle at Rs 209,500 and Rs 164,645 respectively, according to statistics published by the 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 currency ended up at 285.04 with a loss of Rs1.25, according to the State Bank of Pakistan (SBP).

Given 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 high 35.37% in March compared to the same month last year.

Gold is frequently praised as an effective hedge against inflation because it appreciates in value as the value of the currency decreases.

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 increasing 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.

On Monday, the dollar’s early gains were curbed as traders reduced their bets that OPEC’s unexpected production cutbacks would push up energy prices and prompt central banks to raise interest rates.

By 1206 GMT, spot gold increased 0.5% to $1,977.43 per ounce. Futures for U.S. gold increased 0.4% to $1,994.50.

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 increasing 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.

On Monday, the dollar’s early gains were curbed as traders reduced their bets that OPEC’s unexpected production cutbacks would push up energy prices and prompt central banks to raise interest rates.

By 1206 GMT, spot gold increased 0.5% to $1,977.43 per ounce. Futures for U.S. gold increased 0.4% to $1,994.50.

 

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