KARACHI: Gold prices in Pakistan rose more than 2.67 percent to Rs130,300 a tola on Thursday, as Russia’s invasion of Ukraine heightened worries of a European conflict and pushed investors away from risky assets and into safe-haven assets.
The price of the precious metal increased by Rs3,400 per tola and Rs2,915 per ten kilos, respectively, to Rs130,300 and Rs111,711.
“The market will continue to record gains as long as there is uncertainty,” he added, adding that once the crisis is over, prices would collapse.
The price of a tola went past $1,900 on the international market, rising $77 per tola to close at $1,972.
“There is certainly safe-haven demand flowing into the (gold)price,” Saxo Bank analyst Ole Hansen said. “However, this crisis is highly inflationary since it is exerting upward pressure on commodity prices…it is also recessionary in terms of the growth prospects.”
As the crisis escalated, oil prices soared and financial markets plummeted on Thursday.
It’s worth noting that gold prices in Pakistan are roughly Rs4,000 lower than those on the Dubai market.
Meanwhile, silver prices in the domestic market increased by Rs30 per tola and Rs25.72 per ten gramme to Rs1,490 per tola and Rs1,277.43 per ten gram, respectively.