The price of gold has increased by Rs20,150 in Pakistan since January 2020. It is expected that it would continue to rise until coronavirus cases peak in the United States.
Gold prices rose by Rs2,400 per tola and reached a new high in Pakistan Wednesday. A tola of gold is now selling at Rs108,300. The international price of gold jumped to $1,802 an ounce, showing an increase of $26.
COO Rays Commodities Adnan Agar says the price of the precious metal will continue to rise until coronavirus cases peak in major countries, especially the US.
Many US states are reporting a new high in coronavirus cases, he says. Similarly, coronavirus cases are on the rise in many countries, including Brazil and India.
The market was expecting that coronavirus cases will peak by the mid of August, but that situation has changed. People are now expecting that the peak in coronavirus cases may appear after mid-August, which is why the uncertainty has increased.
Investors sell stocks and quickly buy cashable commodities, especially gold, in times of wars and calamities like the coronavirus pandemic, according to Agar.
He said the gold prices in Pakistan have been rising mainly because of increasing international prices.