The price of gold went up by Rs1,500 per tola during the last two working days in Pakistan, according to the rates shared by All Sindh Sarrafa Jewelers Association. The gold price per tola is Rs109,100.
The market has been closed in Karachi due to lockdown on Friday and a public holiday on Saturday as the country celebrates its Independence Day.
“The gold price will increase when the market opens in Pakistan on Monday,” said Adnan Agar, who is the operations director of AA Gold Commodities. “The last impact on gold prices in Pakistan from the international market came when gold was selling for $1,752 per ounce. It has now increased to $1,780 and it is going to stand around that range for the next few days.”
The gold price stood at $1,780 per ounce in the international market by the time this story was filed. Agar expects gold per tola price to increase between Rs500 and Rs1,000.
Gold’s international price affects the prices in the
local market. However, ASSJA shares gold rates with a lag of a day, which means
the Pakistan gold market embraces international gold price impact by a lag of
An ounce is a metric used to quantify gold in the
international market, while tola is used in Pakistan. A tola is approximately
one-third of an ounce. Gold prices follow the same pattern in the international
market and the Pakistan market but the change doesn’t always reflect accurate
He said that gold prices in Pakistan may show a bigger increase in the next few days due to the international price hike of gold as well as the increasing dollar rate amid a volatile situation in neighboring Afghanistan.
“The recent price hike is due to negative data related to consumer sentiments in the US,” he said. He added that a decision related to monetary policy may be around the corner, which will affect the gold price in the next week.
“The developments in the US affect gold price,” says Agar.
“Negative news coming from big economies especially the US such as increasing
deaths due to the pandemic or news of political instability such as riots push
the gold price up. Positive news such as an increase in employment in the US
negatively affects the gold price.
The prices of gold and other precious metals go up
during uncertain times such as wars and disasters as they are considered safe
havens for investment. Their prices fall when stable times are expected ahead.
Investors turn to gold when the economy and stock market do not seem lucrative.
On the other hand, when the economy starts improving,
investors tend to switch to the capital market from gold and other metals. The
situation in the US, the biggest economy in the world, plays an important role
in influencing gold prices globally.
The price of gold started going up internationally as
countries across the world went into lockdowns in March 2020. It rose from
$1,471 to reach an all-time high of $2,063 an ounce by August 6, 2020. The per
tola price in Pakistan rose to Rs132,000 at the time.