On Friday, the price of gold continued to rise and fall, surpassing the significant Rs200,000 per tola threshold for the first time in Pakistani history.

The price of gold (24 carats) increased by Rs 7,000 per tola and Rs 6,000 per 10 grammes, respectively, according to data supplied by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). These prices eventually stabilised at Rs 202,500 per tola and Rs 173,610 per 10 grammes.

Goldsmiths cited a record-breaking devaluation of the rupee and a sharp fall in the nation's foreign exchange reserves as primary causes behind the dramatic price increase in the metal market. They were already looking at the 200,000 per tola rate since the current price hike frenzy.

Since January 20, the price of gold has increased by Rs17,200 per tola, as the rupee has fallen more against the US dollar.

However, investors were only buying gold bars, not jewellery, which had lowered goldsmiths' profit margins and put the labour force at risk of losing jobs as jewellery manufacturers turned to other professions in the absence of business, according to a Friday story in The News.

According to a goldsmith, "there was a reduction in people's purchasing power as more people now use artificial jewellery," and most gold producers are also turning toward artificial jewellery.

From Rs183,900 per tola on December 31, 2022, to Rs202,500 per tola on December 31, 2022, gold prices climbed by Rs18,600, or 10.11%.

Gold rates dropped by $6 to $1,930 per ounce on the world market as the Federal Reserve saw reason to keep interest rates high for longer due to strong US economic data, but caution ahead of inflation data and the policy meeting next week kept bullion prices in check.

Financial experts claimed that the gold was reaching new heights every day as a result of investors' craze for it because the dollar, another safe haven, is currently difficult to come by for a variety of reasons, including an allegedly artificially maintained exchange rate and a huge gap between legal and illegal money markets.