On Thursday, ,the price of gold in Pakistan increased by Rs2,000, reaching a 14-month high of Rs124,200 a tola A in line with rising international prices.
According to dealers, the return of inflationary days in Pakistan and throughout the world has rekindled investor interest in the yellow metal.
On Thursday, gold prices in the local bullion market increased by Rs2,000 per tola and Rs1,714 per gramme to Rs124,200 per tola and Rs106,481 per gramme.
The precious metal had closed the previous day at Rs112,200 per tola and Rs104,767 per gramme.
In the previous four days, the yellow metal has earned a total of Rs6,200.
While the price rise attracts investors’ interest, it has a detrimental impact on local demand, according to a gold trader .
“We do notice some seasonal demand due to wedding season,” he continued, “but generally, lack of purchasing power has disturbed the local market for gold.”
“The yellow metal is attracting attention owing to the increase in commodity prices — notably coal and oil — in the worldwide market,” AA Commodities Director Adnan Agar stated earlier.
“Inflation is usually a positive scenario for gold,” Agar had said, adding that fears about an economic downturn in Pakistan and throughout the world give fire to the gold price rise.
The safe-haven asset is projected to continue in the $1,800-1,810 area on a global scale, although prices are expected to exhaust at that point.
According to the All Sindh Saraf and Jewellers Association, gold rose $4 on the world market to close at $1,785 per ounce (ASSJA).
Analysts think that in the past, when inflation was high, people would take aggressive gold investments. Investors, particularly young investors, are already taking aggressive positions in cryptocurrencies in order to profit quickly.
It’s worth noting that gold prices in Pakistan are about Rs500 lower than those on the Dubai market.
Meanwhile, silver prices in India stayed steady Monday at Rs1,470 per tola and Rs1,260.28 per ten gramme.