The gold price reached an all-time high of Rs100,400 in Pakistani markets on Tuesday, the All Sindh Saraf and Jewellers Association (ASSJA) announced.
According to a media report, this is the first time that the gold price has crossed over Rs100,000 in the country’s history as the precious metal witnessed an increase of Rs700 per tola in its price on Tuesday.
The prices compiled by ASSJA come with a lag of a day after a change in global prices. The bullion market is closed because of a nationwide lockdown, but the prices are calculated based on an increase in international gold price.
Gold futures were trading at $1,721 per ounce in the international market, their highest level in seven-and-a-half years. Gold futures have been on the rise recently, increasing by more than $200 per ounce since last week of March when they were trading at under $1,500.
Gold is correlated with dollar and other commodities, but 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 surge in local prices came despite a nationwide lockdown, which resulted in suspension of trade.
Haroon Chand of ASSJA says no weddings are taking place and no one is buying gold.
“Prices in Pakistan are Rs7,000 less than the Dubai rates. This means if you buy a tola of gold in Dubai, you will pay Rs107,400. The discount may reduce and prices increase when the markets open,” he adds.
According to the association, they will keep their shops closed until the lockdown is over, primarily because they deal in gold and need safety.