With the return of inflationary days in Pakistan and throughout the world, gold has re-attracted investors’ interest, with the safe-haven rising by Rs2,500 per tola to Rs122,200 on Wednesday.
In the local bullion market, gold prices increased by Rs2,500 per tola and Rs2,144 per gram to Rs122,200 per tola and Rs104,767 per gram.
On Monday, the precious metal traded at Rs119,700 per tola and Rs102,623 per gram.
“The yellow metal is attracting attention owing to the increase in commodity prices — notably coal and oil — in the worldwide market
Furthermore, the increase in gold prices is aided by the ongoing weakening of local currencies versus the US dollar.
In the interbank market, the Pakistani currency fell to a new all-time low of Rs173.47 versus the US dollar due to uncertainties surrounding current discussions between Pakistan and the International Monetary Fund.
“Inflation is usually a good thing for gold,” Agar said, adding that fears about an economic downturn in Pakistan and throughout the world are fueling the 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 $18 to settle at $1,781 per ounce on the international market (ASSJA).
To fulfill local demand, the country also imports precious metals.
“Analysts believe that people used to hold aggressive positions in gold during inflationary times, based on historical trends.” 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 the domestic market rose by Rs40 per tola and Rs34.28 per gram to Rs1,470 per tola and Rs1,260.28 per gram, respectively.