As the Pakistani rupee recorded a sharp drop against the US dollar, domestic prices of per tola gold on Thursday soared to Rs206,500 after gaining Rs9,400.

According to the All Sindh Sarafa Jewellers Association (ASSJA), the 10-gram rate of the yellow metal jumped Rs8,058 to Rs177,040.

On the other hand, the rate in the international market reached $1,836 after losing $1.

The development comes as the Pakistani rupee plunged by Rs18.98 against the dollar in the interbank market, down 6.66 per cent. Analysts attributed the decline to uncertainty pertaining to the International Monetary Fund programme.

ASSJA President Haroon Rasheed Chand told Dawn.com that the surge in the prices of the precious metal was because of the steep rise in the dollar rate.

“If this situation continues to persist, the prices will keep rising,” Chand said, warning that the rates may surpass the last record set for the highest gold price ever.