International prices hovering at around eight-year high
Gold prices reached a new high as an Rs800 per tola increase was recorded Thursday while international prices of the precious metal hovered around an eight-year high.
The price per tola moved up to Rs109,100, according to the All Sindh Sarafa and Jewellers Association (ASSJA).
The international rates per ounce of gold moved up by $12 to reach $1,814. According to COO Rays Commodities Adnan Agar, the international prices of gold fluctuate daily. The prices went up to $1,820 per ounce during the day on Wednesday to mark an eight-year high.
Agar added that gold recorded its highest price in the international market in August 2011, when it was priced at $1,920.
Gold in Pakistan has become expensive by Rs20,950 during this year.
Agar said that it is expected that the precious metal price will continue to rise until coronavirus cases peak in major countries, especially in USA.
The market was expecting that coronavirus cases will peak by mid of August, but that has now changed. People are now expecting that the peak in coronavirus cases may not appear by mid of August and it may move further forward, therefore increasing uncertainty.
According to Agar, people sell stocks and buy quickly cashable commodities, especially gold, in times of crisis.