A tola is now worth Rs112,100
Gold’s price in Pakistan dropped by Rs2,500 to Rs112,100 per tola on Tuesday, according to rates shared by the All Sindh Saraf Jewelers Association. The precious metal had shed Rs700 the previous day too.
Gold rates are under pressure after news of the Covid-19 vaccine development. Its price in the international markets fell below $1,900 on Monday from the previous day’s $1,964. The gold rates were at $1,878 by the time of filing of this report.
The Covid-19 vaccine jointly developed by Pfizer and BioNTech is 90% effective in preventing infections, the companies announced Monday. It is currently in its Phase-3 trials.
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.
Gold and other precious metals’ prices increase whenever there’s uncertainty. The uneasy elections in the US also positively affected the price of gold.
Adnan Agar, an expert on commodities, says the coronavirus vaccine news has definitely affected the gold price.
Gold and other metals are considered a safe haven for investments. When things don’t look in favor of the economy, investors tend to invest in gold. The lockdown due to the pandemic affects industry performance.
“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,” Agar said. “So, the market will behave as such.”
Gold and other metals, such as silver, will lose their appeal when a vaccine is developed and available for administration, according to the analyst.