Precious metal price increases by Rs1,000 in Pakistan
The price of gold increased on Thursday as it became apparent that US President Donald Trump may not accept defeat as his opponent Joe Biden takes a clear lead in the ongoing elections.
Gold and other precious metals’ prices increase whenever there’s uncertainty. The uneasy elections in the US has positively affected the price of gold.
In Pakistan, gold’s per tola price increased by Rs1,000 to reach Rs114,600, according to rates shared by the All Sindh Saraf Jewelers Association (ASSJA) on Thursday.
Adnan Agar, the director of AA Commodities, says the gold price has been reacting to the US elections.
Trump has been considered a supporter of the stock market. Therefore, chances of his adversary Biden winning the elections will negatively affect the stock market. This means that if Biden is elected, gold will become more attractive for investors.
Gold and other metals are considered a safe haven for investments. When things don’t look in favor of the economy and stock markets, investors tend to invest in gold.
The international price of gold appreciated to $1,929 per ounce by the time this story was filed. It was $1,902 the previous day.
The price of gold started increasing internationally as countries across the world went into lockdowns in March due to the COVID-19 pandemic. It rose from $1,471 to reach an all-time high of $2,063 by August 6.
But later a fall in the price of gold was also seen. It fell to $1,861 per ounce by September 25.
Agar predicts gold will be very volatile during the next week and the price may go up because the US may face one of its most uneasy power transitions in history as Trump says he will not concede defeat. His supporters may also take to the streets and violence can also be expected.
But the hike in gold prices in the coming weeks may be short-lived as a COVID-19 vaccine may be announced, according to reports.
“The market works on expectations. There’s an expectation that the news of the development of a COVID-19 vaccine may just be around the corner. So, the market will behave as such,” he said.
Agar added that gold and other metals, such as silver, will lose their appeal when a COVID-19 vaccine is developed and is available for administration.