Saturday Oct 23, 2021
KARACHI: Gold rose on Saturday, 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 Rs1,600 per tola and Rs1,371 per 10 grams to settle at Rs127,200 per tola and Rs109,053 per 10 grams.
A day earlier, the yellow metal closed at Rs125,600 per tola and Rs107,682 per 10 grams.
According to the All Sindh Saraf and Jeweller Association, the precious commodity has gained Rs9,200 in the past five sessions.
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.
Earlier, speaking to Geo.tv, 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 was adding fuel to the uptrend in gold prices.
Local dealers had 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.
However, the increase in prices is negatively affecting the local demand.
"We do see some seasonal demand because of the wedding season but overall, lack of purchasing power has disrupted the local demand for gold," a gold dealer had said.
The price of gold remained unchanged at $1,793 per ounce in the international market.
It is pertinent to mention that the gold rates in Pakistan are around Rs2,000 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.