KARACHI: Gold hit a seven-year peak as fear regarding coronavirus does not seem to be off the radar.
While gold saw safe-haven inflows, world stock markets and oil prices took a dive based on dampened sentiments owing to the epidemic.
Gold prices in Pakistan climbed Rs2,000 in the local market to Rs96,300 per tola, an all-time high as per the Jewelers Association of Sindh. The price of 10 grams increased to Rs82,562 after a jump of Rs1,715. This is owing to the investor flight towards gold as a safe haven amongst dampened economic sentiments.
On the London Bullion Market, gold rose to $1,689.31 per ounce, last witnessed in January 2013.
It later eased to $1,676.50 as investors placed their concern in the precious metal as a safety measure amidst turbulence within the market.
Brent oil fell by approximately 5pc as the medical crisis fueled concerns regarding global energy demand. In addition, analysts believe that the global oil market is faced with further weakness owing to Russia’s refusal to agree to an emergency OPEC+ meeting to curb oil production. With inventory likely to rise, further pressure is expected on oil prices.
The World Health Organization chief on Monday warned countries to prepare for a potential pandemic of new coronavirus, calling the sudden increase in cases in Iran, Italy and South Korea “deeply concerning”.