After an increase of more than 1% in line with growing prices in the worldwide market, the price of gold breached the Rs170,000 per tola benchmark for the first time in Pakistani history.

The price of the precious good fell by Rs850 per tola and Rs729 per 10 gramme, ending a five-day winning trend, according to figures earlier issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The association noted, however, that the price had increased by a staggering Rs2,000 per tola and Rs1,714 per 10 gramme, hours after the initial data was given.

The new price additionally reached an all-time high of Rs170,800 per tola and Rs144,719 per 10 gramme.

The most recent costs for local marketplaces were established while taking into account the costs of transactions between buyers and sellers.

Gold dealers lamented that their lucrative industry had vanished as a result of the nation's rising gold prices.

In this case, only investors are buying gold. Otherwise, they claimed, artificial jewellery is worn for weddings and other events.

A day earlier, Adnan Agar, Director of AA Gold Commodities, claimed in an interview with Geo.tv that a lack of dollars was a major factor driving up the price of gold on the local market.

He explained the cause of the sudden shift in investor attention: "Investors want to invest in the dollar because of the rising difference between the open market and the interbank market rate, which is around Rs20-30; however, despite the significant difference dollar isn't available and people are concerned about the financial situation in Pakistan and chances of default."

He continued by saying that because of the rumours that the dollar could rise to 350–400 versus the rupee, investors were attempting to buy the precious metal.

But given the lack of dollars, Agar argued, "they have turned their attention to gold as the price of the yellow metal is likewise growing in the worldwide market."

After data showing a smaller-than-expected increase in US consumer prices solidified predictions for a delay in Federal Reserve rate hikes, gold price fell by $7 per ounce to its highest levels in more than five months, finishing at $1,817.