Gold has become 30% more expensive since January 1 as international prices reach a nine-year high. The price of gold is hitting a new high almost every day.
A tola of gold is now selling for Rs115,000 in Pakistan, up by Rs1,500 from the previous day’s tally. This is the highest price gold ever sold for in the country’s history and Rs26,850 more expensive than Rs88,150, its price on January 1.
The prices of gold in Pakistan are largely determined by its international prices, which rose by $15 to reach $1,856 per ounce – the highest in nine years.
Rays Commodities COO Adnan Agar says that there’s high uncertainty this year, which means gold prices may continue to increase. “Coronavirus cases are yet to peak in America and the country with the biggest economy is also preparing to hold uneasy elections later this year as the pandemic would force the government from holding elections in a traditional way,” he told Samaa Money. “Coronavirus may force the government to hold online elections.
“President Donald Trump has apprehensions regarding online elections and all these are adding to the uncertainty,” he said. “If this environment of uncertainty continues for another six months then I think gold’s international prices may even break the psychological barrier of $2,000 per ounce.”
Agar, however, believes that an early development of the coronavirus vaccine and Trump’s re-election as the US president may push gold prices down.
Gold recorded its highest price in the international market in August 2011 at $1,920 per ounce. Since Pakistan imports gold, an increase in international price translates to a surge in local price, which is updated with a lag of one day.