Gold gains Rs350 per tola due to soaring inflation

Gold price in Pakistan rose on Wednesday after falling by Rs4,300 per tola over the last three sessions as sentiments improved in the international market after the Russia-Ukraine conflict boosted demand for safe-haven bullion and as investors sought a hedge against inflationary pressures.

Gold price in Pakistan gained Rs350 per tola and Rs300 per 10 grams to settle at Rs130,350 and Rs111,754.

Bullion prices rose $22 per ounce in the international market to settle at $1,977 per ounce.

As a result of the Ukraine crisis and inflation concerns, gold is gaining support on the international market, according to gold analysts. In addition, international prices could return to $2,000 an ounce in the coming days.

However, Agar noted that the precious commodity will undergo correction after crossing the threshold of $2,000.

Gold rates in Pakistan are around Rs5,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,520 and Rs1,303.15 today.