Gold prices moved up Rs1,000 per tola in Pakistan to hit a new high Tuesday July 7, to Rs105,900 despite prices being stable in the international markets, according to the All Sindh Sarafa and Jewellers Association.
Prices had been fluctuating upward in both Pakistan and international markets. The local prices of gold increased on Tuesday but international prices remained unmoved at $1,776 per ounce.
The chairman of the All Pakistan Gem and Jewelry Traders and Exporters Association, Akhtar Tessori, said that this has happened because gold imports have not been taking place due to Covid-19 pandemic, which has affected trade. It has hurt exports and imports. “There’s no more gold coming into the country,” he said. Tessori added that gold in Pakistan has still been underpriced by Rs6,000. This is also called under-costing, compared to international markets. It means that the same amount of gold sold in Pakistan for Rs105,900 has been selling at Rs111,900 in international markets.
Tesori says that it is because people in Pakistan indulge in profit-booking (by selling gold when prices go up).
MAFA Capital CEO Adnan Agar attributed the upward trend to economic uncertainty created by the pandemic. Investment in gold is assumed to be safe in times of crisis therefore the precious metal has seen an upward graph since the virus started to appear in Europe and America. The increase in gold’s international prices pushed its prices up in Pakistan too.