Concerns about uncertain economic conditions raised gold prices on Saturday, prompting a flight from riskier commodities to safer ones.
Gold prices in the local bullion market rose by Rs1,600 per tola and Rs1,371 per gramme to Rs127,200 per tola and Rs109,053 per gramme, respectively.
The yellow gold had closed the previous day at Rs125,600 per tola and Rs107,682 per 10 gramme.
The precious metal has earned Rs9,200 in the last five sessions, according to the All Sindh Saraf and Jeweller Association.
Gold is regarded as one of the safest investments, and as a result, its price is increasing as new money pours in.
Investors’ faith in the dollar has plummeted as the currency continues to gain day after day, and they have shifted their money to gold.
“The yellow metal is garnering attention because to the upswing in commodity prices — mainly coal and oil — in the worldwide market,” AA Commodities Director Adnan Agar told Geo.tv earlier.
“Inflation is usually a good thing for gold,” Agar had said, adding that fears about an economic downturn in Pakistan and elsewhere were behind the gold price rise.
Local traders also stated that the return of inflationary days in Pakistan and throughout the world has re-attracted investors’ interest to gold, since safer commodities become desirable at such times.
However, the price hike is having a detrimental impact on local demand.
“We do notice some seasonal demand because of wedding season,” a gold dealer said, “but generally, lack of purchasing power has disturbed the local market for gold.”
In the international market, the price of gold remained stable at $1,793 per ounce.
It’s worth noting that gold prices in Pakistan are roughly Rs2,000 lower than those on the Dubai market.
Meanwhile, silver prices in India stayed constant Monday at Rs1,470 per tola and Rs1,260.28 per ten gramme.