- This is the first time that gold has jumped above Rs100,000 in Pakistan.
Gold price reached an all-time high of Rs100,400 per tola in Pakistan, according to the All Sindh Saraf and Jewellers Association (ASSJA).
As per details, this is the first time that gold has shot above Rs100,000 in the country. The precious metal saw an increase of Rs700 per tola in its price. The prices compiled by the ASSJA come with a lag of a day after changes in international prices.
Gold is correlated with the dollar and other commodities, but the dollar has weakened and alternates such as oil have also become cheaper because of a global slowdown. This is why investors are parking their money into gold, which is considered safe in uncertain times, say, market experts. The market is weighing in the previous peak when gold hit $1,900 per ounce in 2011.
In international markets, gold prices rose to a more than seven-year high on Tuesday on rising fears of a steeper economic downturn and amid massive liquidity measures by global central banks. Spot gold gained 0.6pc to $1,724.72 per ounce by 0804 GMT, having touched its highest since Nov. 2012 at $1,726.85 earlier in the session. US gold futures rose 0.6pc to $1,772.20.
“The concerns about the economic outlook are particularly supportive of gold. Liquidity (from the Federal Reserve) combined with the background of lower interest rates makes gold a much more attractive proposition," said Michael McCarthy, chief strategist at CMC Markets.
Meanwhile, the surge in local prices came despite a nationwide lockdown, which resulted in the suspension of trade. The ASSJA says they will keep their shops closed until the lockdown is over, primarily because they deal in gold and need safety.