A tola now sells for Rs113,500
The price of gold dropped Rs1,500 in Pakistan to reach Rs113,500 per tola Tuesday, according to the rates compiled by All Sindh Saraf Jewelers Association.
The precious metal has seen a gradually declining trend since it touched Rs132,000 per tola in the first week of August.
Its price in Pakistan is guided by the price in international market. The price of gold dropped by $11 to $1,916 an ounce in the international market on Tuesday.
Adnan Agar, an expert on commodities, says the environment is still favourable for gold since there’s little improvement on the coronavirus front in the world. Low interest rates and stimulus packages around world have also been favouring the gold prices.
Its international price has been showing resistance at $1,900-mark and chances are it would continue to fluctuate in the vicinity. However, Agar believes that if the price dips below the $1,800-mark, then it would be difficult for the metal to recover its lost value.
The US elections scheduled for November have also been adding up to the uncertainty that sends the gold prices up, he says.
The prices of gold and other precious metals have been rising since the coronavirus started spreading in countries like the US. Uncertain times such as wars and natural catastrophes entice investors to invest in ‘safe havens’ such as gold.
Gold and silver are considered safe investments in times of crisis as they are easily cashed around the globe.