business
Tuesday Mar 08 2022
By

Gold price gains Rs700 per tola, traded at Rs130,700

A saleswoman stands behind the showcased gold necklaces at a jewellery showroom in Agartala, capital of Indias northeastern state of Tripura, August 18, 2010. — Reuters/File
A saleswoman stands behind the showcased gold necklaces at a jewellery showroom in Agartala, capital of India's northeastern state of Tripura, August 18, 2010. — Reuters/File

  • Gold price rises by Rs600 per 10 grams to settle at Rs112,054.
  • Local gold rates are around Rs7,500 below cost.
  • In international market, gold crosses $2,000 level.


KARACHI: In line with the international market, gold prices in Pakistan rose by Rs700 per tola on Tuesday to settle at Rs130,700.

The price of the precious commodity rose by Rs600 per 10 grams to settle at Rs112,054 per 10 grams, respectively.

In the international market, gold powered past the key $2,000 level as the Russia-Ukraine crisis fuelled worries of a supply squeeze of the metal.

Gold price edged higher by $18 to close at $2,009 and continues to be a low volatility safe-haven.

Analysts suggest that the gold market is going to face a period of extremely high inflation where the central bank will be struggling to put up a defence because of other constraints.

“And that will continue to attract investors into the gold market," they said.

Analysts have said gold, traditionally considered a safe store of value during global crises, could make another run toward an all-time high of Rs132,000 that hit on October 26, 2021, if the situation worsens.

Gold is the ultimate antidote to stagflation — economic recession with high inflation — which is increasingly plausible if things keep escalating.

Gold rates in Pakistan are around Rs7,500 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,480 per tola and Rs1,268.86 per 10 grams today.