Thursday Oct 21, 2021
KARACHI: The price of gold jumped Rs2,000 in Pakistan near a 14-month high of Rs124,200 per tola on Thursday in line with an increase in international prices.
Dealers suggest that the return of inflationary days in Pakistan and around the world has once again invited investors’ attention towards the yellow metal.
Gold prices in the local bullion market jumped Rs2,000 per tola and Rs1,714 per 10 grams to reach Rs124,200 per tola and Rs106,481 per 10 grams on Thursday.
A day earlier, the precious commodity closed at Rs112,200 per tola and Rs104,767 per 10 grams.
The yellow metal has cumulatively gained Rs6,200 in the last four days.
While the increase in prices is inviting attention from investors, it is negatively affecting the local demand, a gold dealer told Geo.tv.
"We do see some seasonal demand because of the wedding season but overall, lack of purchasing power has disrupted the local demand for gold," he added.
Earlier, AA Commodities Director Adnan Agar had said: "The yellow metal is gaining attention due to the uptrend in commodity prices — especially coal and oil — in the global market."
"Inflation is always a favourable scenario for gold," Agar had said, adding that concerns regarding an economic slowdown in Pakistan and worldwide add fuel to the uptrend in gold prices.
Internationally, the safe-haven asset is expected to remain in the range of $1,800-1,810, however, the prices exhaust at that stage.
Gold recorded an increase of $4 to close at $1,785 per ounce in the international market, according to the All Sindh Saraf and Jewellers Association (ASSJA).
Analysts believe that in the past, people used to take aggressive positions for gold amid inflation. However, investors —especially young investors — are now taking aggressive positions in cryptocurrencies to make quick gains.
It is pertinent to mention that the gold rates in Pakistan are around Rs500 below cost compared to the gold rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,470 per tola and Rs1,260.28 per 10 grams today.