KARACHI: On Tuesday, gold rates in Pakistan jumped by Rs700 per tola to Rs130,700, in line with the worldwide market.
The price of the precious metal increased by Rs600 per 10 gram, settling at Rs112,054 per 10 gram.
Gold surged beyond the critical $2,000 threshold on the worldwide market as the Russia-Ukraine conflict fueled fears of a gold supply shortage.
Gold’s price rose $18 to $2,009, indicating that it remains a low-volatility safe-haven.
“This will continue to draw investors to the gold market,” they said.
Analysts believe that if the situation worsens, gold, which has historically been seen as a safe haven amid global crises, might make another run toward its all-time high of Rs132,000 set on October 26, 2021.
Gold is the ultimate cure to stagflation or an economic downturn accompanied by rising inflation, which is becoming more likely as the situation worsens.
When compared to the Dubai market, gold prices in Pakistan are roughly Rs7,500 lower.
Meanwhile, silver prices in India stayed constant Monday at Rs1,480 per tola and Rs1,268.86 per ten gramme.
According to analysts, the gold market will confront a time of extraordinarily high inflation, during which the central bank would struggle to defend itself due to other restrictions.