KARACHI: In an unprecedented single-day hike, gold prices in Pakistan soared by Rs8,100 per tola, reaching a new all-time high of Rs 357,800 on Monday. The increase is the outcome of local demand dynamics along with the sharp increase in international bullion rates.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), 10-gram gold increased Rs6,944 to end at Rs306,755, one of the steepest yearly increases. On the previous trading day (Saturday), the rate remained stable at Rs 349,700 per tola.
This sends up the rally with the rest of the world into gold, which shot up to $3,395 per ounce from an increase of $69 in a day. As APGJSA reported, the global price includes a $20 premium, which clearly indicates increased demand and supply constraints.
Silver also moved upward slightly in the local market, attaining Rs 24 to entail Rs 3,441 per tola thus showing an inclination of dealing in the precious metals by investors possibly due to unrest in other markets.
According to analysts, the forces behind the ascent have been economic uncertainty, inflation fears, and changes in investors' consideration. Investors are increasingly valuing gold as a safe haven amidst trade wars, currency fluctuations, and an unstable stock market.
As prices keep spiraling up, jewellers may expect very low buying at retail level since investors may tend to see this as an opportunity to lock value. For the meantime, market speculation will catch up with economic indicators from around the globe and currency movements that are likely to determine the course precious metals will take next.
[Source Credit: Business Recorder]
