Gold rises to all time high of Rs108,300 per tola

KARACHI: The price of 24 karat gold increased by Rs2,400 on Wednesday and reached its highest ever level of Rs108,300 per tola as per the Karachi Sarafa Association.

The price of 10 grams of gold rose by Rs2,058 to reach Rs92,850 from its price of Rs90,792 on Tuesday.

Local gold prices have primarily increased due to the rally in gold prices in international markets. However, due to the weak purchasing power in the local economy and a lack of consumption interest, gold prices in Pakistan have increased by a relatively lower extent compared to increase in international gold prices.

On Wednesday, gold breached $1,800 an ounce in the international market for the first time since 2011 as investors lay cautious and use it as a safe haven investment owing to the uncertainty brought about by Covid-19.

Moreover, concerns have been raised in the international market that post Covid-19 economic recovery will be long and gradual, as opposed to a v shape, which has led investors to hedge their positions against riskier assets.

Spot gold rose 0.4 per cent to $1,802.15 per ounce by 1217 GMT, after hitting its highest since November 2011, at $1,804.41, earlier in the session.

US gold futures rose 0.2 per cent to $1,814.10 per ounce.