The price of gold continued to surge, setting a new high of Rs118,700 per tola in Pakistan on Friday, according to the All Sindh Sarafa Jewelers Association.
The precious metal recorded an increase of Rs1,400 in its price after gold futures became $14 more expensive in the international market.
The price of gold has increased by 34% since January 1, when a tola cost Rs88,150. Gold prices have been increasing in the international market following a surge in coronavirus cases in the United States. They have now breached a nine-year record and trading at $1,896, not far from its historic high of $1,920, the level it last hit in 2011.
Experts attribute this hike to uncertainty created by the coronavirus pandemic. Even countries like China are on a buying spree for the precious metal, according to Akhtar Tessori, the chairperson of All Pakistan Gem and Jewellery Traders and Exporters Association.
Adnan Agar, the COO of Rays Commodities, says that people are concerned and therefore they are opting for gold, which is considered a safe haven (secured investment) in uncertain times.
Elections in the US scheduled for later this year are adding to this uncertainty too. Gold is considered safe to invest in during uncertain times.