KARACHI: Gold scaled to a new peak on Monday as the delayed political uncertainty clouded the economic outlook and bolstered bullion’s safe-haven allure, though analysts said the rapid pace of gains could prompt some correction.
The precious commodity has emerged as a safe asset in these challenging times of the economic and political crisis. People were aggressively buying gold to protect their cash from deflation.
Gold prices in the local bullion market soared by Rs2,000 per tola and Rs1,714 per 10 grams today to reach an all-time high of Rs148,300 and Rs127,143 amid continuous depreciation of the rupee against the US dollar.
The precious commodity closed at a record high of Rs147,250 per tola and Rs126,243 per 10 grams on June 20. Cumulatively, the yellow metal gained Rs4,300 per tola in Pakistan during the last four sessions.
Significant fluctuations in the local currency coupled with speculations that the rupee will further depreciate added fuel to the already surging price of the yellow metal.
“Safe-haven buying can be seen in the market; however, local customers are staying on the sidelines due to lack of purchasing power,” a gold dealer told Geo.tv while describing the market scenario.
In the international market, bullion prices rose by $2 per ounce to settle at $1,730 — staying above the key level of $1,700.
Gold rates in Pakistan are around Rs2,500 below the cost compared to the rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,580 per tola and Rs1,354.60 per 10 grams today.
