KARACHI: The price of 24-karat gold increased by Rs2,300 to Rs117,300 on Thursday, as against its previous closing at Rs115,000, Karachi Sarafa Association reported.
Likewise, the price of 10-gram gold also witnessed an increase of Rs1,972 and was trade at Rs100,566, against its sale at Rs98,594 on Wednesday.
The price of per-tola silver increased by Rs30 to Rs1,350, while that of 10-gram silver went up by Rs25.70 to Rs1,157.40.
Gold price in the international market increased by $26 and was traded at $1,882 on Thursday, as against its sale at Rs1,856 the previous day.
Analysts expect the gap between international gold price and the local gold price to shrink further. Previously, the local prices treaded behind international prices. However, the 7th back to back gains in the price of gold shows that the difference is shrinking.
As per Haji Haroon Chand, President of All Sindh Sarafa Association, the gold rally will likely take the price of gold to approximately Rs125,000 despite lacklustre demand in the jewellery segment. Purchasing power remains weak.
The heightened pace of local prices is primarily concerned with the depreciation of the rupee, international trends, and rising inflation.
While the dollar remains depressed in the international market, analysts anticipate gold to accelerate amidst Covid-19 uncertainty.
However, analysts are cautious about long term projections keeping in mind once the global economy is back on track, the gold rush may not seem as lucrative.