The price of gold in Pakistan jumped on Thursday by Rs1,900 and the new per tola price is now Rs115,000, according to the gold rates compiled by the All Sindh Saraf Jewelers Association.
The gold price has shown a gradual declining trend since it touched a new high in the first week of August, when it touched Rs132,000 per tola. It reduced to a seven-week low to Rs113,100 by Wednesday only to take a significant bounce on Thursday.
Gold’s 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 when it reached its high in Pakistan. The international price of gold, which is quoted for an ounce of gold, stood at $1,963 on Thursday when this story was filed.
The price keeps fluctuating during the day as markets of different countries open separately at 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 is still favourable for gold since there’s little improvement on the coronavirus front across the world. Low interest rates and stimulus packages around the world have also been favouring gold and other metals, such as silver.
He said that gold’s international price has been showing a resistance at the $1,900-mark and chances are it will continue to fluctuate in the vicinity. He said that the $1,900-mark has a psychological significance as investors think of the gold bullions’ per ounce worth over it.
The US elections in November have also been adding to the uncertainty that feeds gold prices to soar, he said. Gold and other metal prices like silver have been rising since coronavirus started to spread in countries like the USA. Uncertain times such as wars and natural catastrophes and, recently, the coronavirus pandemic, entice investors to invest in ‘safe haven’ investment places such as gold.