KARACHI: Gold rose on Friday, boosted by concerns regarding uncertain economic conditions which have sparked a flight from risky commodities towards safer ones.
Gold prices in the local bullion market recorded an increase of Rs100 per tola and Rs85 per 10 grams to settle at Rs126,450 per tola and Rs108,410 per 10 grams.
A day earlier, the yellow metal closed at Rs126,350 per tola and Rs108,325 per 10 grams.
Gold is considered one of the safest investments, hence, its price is rising as investment is pouring in at a rapid pace.
As the dollar continues to strengthen day after day, investors' confidence in the currency has tumbled and they have diverted their investment to gold.
Earlier, speaking to Geo.tv, AA Commodities Director Adnan Agar had said: "Inflation is always a favourable scenario for gold."
He further added that concerns regarding an economic slowdown in Pakistan and worldwide was adding fuel to the uptrend in gold prices.
Local dealers also said that the return of inflationary days in Pakistan and around the world has once again invited investors’ attention towards the yellow metal as at such a time, safer commodities become attractive.
It is pertinent to mention that the gold rates in Pakistan are around Rs3,500 below the cost compared to the gold rate in the Dubai market.
The international gold price edged up by $5 per ounce to $1,891 as a potential Russia-US meeting cooled some nerves about an escalation in the Ukraine conflict.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,460 per tola and Rs1,251.71 per 10 grams today