According to Sindh Sarafa Jewelers Association, the price of gold has suddenly increased by Rs. 1500 per tola while the price of gold increased by Rs1,285 per 10 grams to settle at Rs124,742.

In the international market, the price of gold rose by $27 per ounce to close at $1,846.

Bullion is often seen as an inflation hedge, but the opportunity cost of holding it is higher when the short-term interest rates are raised, as gold yields no interest.

Meanwhile, silver prices in the local market did not witness increase and remained at Rs1,560 per tola and Rs1,337.44. per 10 grams.