Friday Oct 22, 2021
KARACHI: The gold price maintained its uptrend in the domestic market and rose by Rs1,400 to close at Rs125,600 per tola on Friday in line with the surge in the international bullion market.
Gold prices in the local bullion market jumped Rs1,201 per 10 grams to reach Rs107,682.
A day earlier, the precious commodity closed at Rs124,200 per tola and Rs106,481 per 10 grams.
Cumulatively, in the past four trading sessions, the price of gold has soared Rs7,600, according to the All Sindh Saraf and Jewellers Association.
Gold dealers suggest that prevailing uncertain economic conditions have sparked a flight from risky commodities towards safer commodities as gold is considered one of the safest investments; hence, its price is skyrocketing 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.
The dealers told Geo.tv that the price hike is a reflection of persistent rise in the international price of gold.
They 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 turn attractive.
While the increase in prices is inviting attention from investors, it is negatively affecting the local demand, a gold dealer said on Thursday.
"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 had added.
Gold recorded an increase of $8 to close at $1,793 per ounce in the international market as growing inflationary pressure boosted demand for the safe-haven metal.
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.