Price of gold surges in Pakistan

Gold’s per tola price increased by Rs1,400 to reach Rs114,400 in Pakistan, according to rates compiled by the All Sindh Saraf Jewellers Association.

The price of gold has again showed an upward trend after it recently dropped to a two-month low to Rs111,400.

According to an expert on gold prices, Adnan Agar, who is the director of AA Commodities, low interest rates around the world and uncertainty have been creating a favourable environment for gold prices.

Gold and other metal prices feed on uncertainty, since they are considered a safe-haven for investment during uncertain times.

The international price of gold appreciated to $1,919 per ounce by the time this story was filed. The price of gold started increasing internationally as countries across the world went into lockdowns in March due to the COVID-19 pandemic. It rose from $1,471 to reach an all-time high of $2,063 by August 6.

But recently, a fall in the price of gold was also seen. It fell to $1,861 per ounce by September 25. But Agar thinks it fell because of consolidation or profit-booking. Whenever the price increases quickly, people start selling to book profits. This, in turn, brings the prices down.

He said he does not see the precious metal losing its appeal anytime soon. “The price of gold must be closely followed for the next two months as it can be highly volatile”, he suggested.

The US may have one of its most controversial elections in November as Trump has suggested he will not accept defeat.

Agar says the US election itself, and the possibility of a controversial one, adds to political uncertainty. It can cause the gold price to rise because of the safe haven appeal to investors.

News Network International