Gold prices hit an all-time peak of Rs128,700 / tola on Wednesday, having risen by more than 46 percent in 2020 from the meagre 30 percent in 2019, according to dealers. The dealers claimed that gold prices increased with the global trend as foreign market levels increased by $66 to an all-time peak of $2,041 an ounce.
Prices surge at the back of the weakened economy, sliding US Treasury rates, and steps to stimulate economies across the world as a consequence of the coronavirus pandemic. The All Sindh Saraf Jewellers Association (ASSJA) said that the local market rate of gold fell to Rs128,700 per tola, while the price of 10 grams of gold increased by Rs4,116 to Rs110,340/10 gram.
President ASSJA Haroon Chand said that gold prices were evidently out of reach. “There is a demand of $2,100 to $2,200 an ounce an month on the world sector.” Meanwhile, the silver rate increased by Rs130 to hit Rs1,630 / tola. Silver prices of 10 grams have also risen by Rs111.46 to Rs1,397.46/10 gram.
CEO Arif Habib Resources, Ahsan Mehanti, said that gold prices were increasing with the dollar weakening and global instability. “Investors are heading into safe haven properties,” Mehanti stated. A professional goldsmith, Muhammad Shafi Khan, said there was talk that the metal would be worth $3,000 an ounce, because it was on the upward trajectory.
“Jewelry trading is sluggish, so then, people are buying gold bars in various weights, beginning with a gram,” Khan said. “We’re offering one gram product, 2.5 gram bars, 5 gram bars, 10 gram bars, and more.” It has been noticed that there is relatively little trade in jewelry. The sudden spike in the price of gold stopped jewelers and merchants from making transactions.
“The market is flat, but gold is on a fast pace,” Khan said. Gold in 2020 grew by Rs40, 550 per tola to Rs128,700 per tola on 5 August, from Rs88,150 per tola on 1 January 2020. In 2019, the cost of gold increased by Rs20,350 to Rs88,150 per tola by December-end, from Rs67,800 to Rs1,2019. Khan also claimed that Rupee ‘s decline had a role to play in this gold rally. “Gold and other metals are also growing together with gold, but gold is rising at the highest pace,” Khan said.