KARACHI: On Monday, gold prices rose by Rs600 per tola on the local market, as economic uncertainty prompted a shift away from riskier commodities and toward safer ones.
Gold prices in the local bullion market rose Rs600 per tola and Rs515 per gramme to Rs127,800 per tola and Rs109,568 per gramme, respectively.
The precious metal has earned Rs9,800 in the last six 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 money pours in at a rapid rate.
However, the price hike is having a detrimental impact on local demand.
“We do notice some seasonal demand because of the wedding season,” a gold dealer told Geo.tv. “However, lack of purchasing power has disturbed the local market for gold.”
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 stated 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.
The price of gold remained unchanged on the international market, rising $9 to $1,802 per ounce.
It’s worth noting that gold prices in Pakistan are roughly Rs1,500 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.