The price of gold has shown a declining trend for the fourth consecutive day as the metal’s per tola price has dropped by Rs2,800 since last Friday, when it was being sold for Rs115,900.
On Wednesday, the per tola price of gold fell by Rs400 to reach Rs113,100, according to the gold rates compiled by the All Sindh Saraf Jewelers Association (ASSJA).
The gold price has been showing a gradual declining trend since it touched a new high in the first week of August, when it touched Rs132,000 per tola.
The gold price in Pakistan is guided by the metal’s international price, which also touched a new high at $2,063 for every ounce of gold during the same period. The international price of gold, which is quoted for an ounce of gold, on Wednesday stood at $1,935 when this story was filed.
Gold price keeps fluctuating during the day as markets of different countries open separately on their respective timings. The international market incorporates every major country’s market opening time.
Commodities expert Adnan Agar, who is the director of AA Commodities, says the environment was still favourable for gold since there’s little improvement on the coronavirus front in the world. Meanwhile, low-interest rates and stimulus packages around the world have also been favouring gold and other metal such as silver prices.
He further said that gold’s international price has been showing resistance at the $1,900-mark and chances are it would continue to fluctuate. He said that the $1,900-mark has psychological significance as investors at the moment think gold bullions per ounce worth over it.
He, however, said that if the price dips below $1,800-mark, in that case, it will be difficult for the metal to recover its lost value. He further said that upcoming US elections in November have also been adding up to the uncertainty that feeds gold prices to soar.
Gold and other metal prices like silver have been rising since coronavirus started to spread countries like the USA. Uncertain times such as wars and natural catastrophes and recently coronavirus pandemic entice investors to invest in ‘safe haven’ investment places such as gold.
Gold and silver are considered safe investments in times of crisis as they are considered to be easily cashed across the globe.