Gold price surge by Rs4,100 per tola in Pakistan

Gold price surged by Rs4,100 per tola in Pakistan in a week.

As per the All-Pakistan Sarafa Gems and Jewellers Association’s data, the price of gold reached Rs178,584 per tola.

The association data showed that in the week ended March 18, the precious commodity gained Rs9,600, or 4.8%, per tola as gold barely responded to the appreciation of the Pakistani rupee against the US dollar.

The yellow metal managed to gain during all six sessions.

Gold is likely to shine through the chaos as investors adopt a guarded stance.

The upward trend in gold prices is attributed to the investors’ risk aversion on display amid political tensions and the IMF deal has sent money into safe-haven assets.

While the other markets slide investors generally find refuge in gold to maintain a low-risk profile.

Reports claim that the price of gold is Rs11,500 per tola undercoat in Pakistan, as compared to the Dubai market, showing that the Pakistani gold market was currently cheaper than the global.

The gold prices surged more than 2% in the global market as a wave of banking crises shook global markets and put bullion on track for its biggest weekly rise in three years, while bets solidified for a less aggressive Federal Reserve in its fight against inflation. The per-ounce price settled at $1,989 after an increase of $53.

“Gold is surging on fears that more bad banking news could appear over the weekend and hopes that the Fed will pause its rate hikes next week,” said Tai Wong, an independent metals trader based in New York.

Meanwhile, silver prices in the domestic market increased by Rs100 per tola and Rs85.73 per 10 grams to settle at Rs2,250 per tola and Rs1,929 per 10 grams, respectively.