Gold price jumps Rs2,500 per tola in Pakistan
KARACHI: Gold has once again invited investors’ attention with the return of inflationary days in Pakistan and around the world, as the safe-haven shot up by Rs2,500 per tola to Rs122,200 on Wednesday.
Gold prices in the local bullion market jumped Rs2,500 per tola and Rs2,144 per 10 grams to reach Rs122,200 per tola and Rs104,767 per 10 grams.
The precious commodity closed at Rs119,700 per tola and Rs102,623 per 10 grams on Monday.
Speaking to Geo.tv, AA Commodities Director Adnan Agar said: “The yellow metal is gaining attention due to the uptrend in commodity prices — especially coal and oil — in the global market.”
Moreover, continuous depreciation in local currency against the US dollar also support the uptrend in gold prices.
Pakistani currency hit a new all-time low of Rs173.47 against the US dollar in the interbank market in the wake of uncertainty regarding the ongoing talks between Pakistan and the International Monetary Fund.
“Inflation is always a favourable scenario for gold,” Agar said, adding that concerns regarding an economic slowdown in Pakistan and worldwide add fuel to the uptrend in gold prices.
Internationally, the safe-haven asset is expected to remain in the range of $1,800-1,810, however, the prices exhaust at that stage.
Gold recorded an increase of $18 to close at $1,781 per ounce in the international market, according to the All Sindh Saraf and Jewellers Association (ASSJA).
The country also imports the precious metal to meet the local demand.
Analysts believe that past practices suggest that people used to take aggressive positions in gold in inflationary days. However, investors —especially young investors — are now taking aggressive positions in cryptocurrencies to make quick gains.
It is pertinent to mention that the gold rates in Pakistan are around Rs500 below cost compared to the gold rate in the Dubai market.
Meanwhile, silver prices in the domestic market recorded an increase of Rs40 per tola and Rs34.28 per 10-gram to settle at Rs1,470 per tola and Rs1,260.28 per 10 grams.