Gold has surged to an all-time high in Pakistan as demand for safe-haven assets increased following the outbreak of the deadly coronavirus in China.
The price was recorded at Rs 96,300 per tola (increasing by Rs. 2000), according to All Sindh Saraf Jewellers Association. Similarly, the price of 10 grams of gold increased by Rs. 1715 and reached at Rs. 82,562.
This breaches the previous peak of Rs. 93,650 and Rs. 80,075 achieved last week over the same issues as investors opted to turn to the yellow metal.
The international market also saw a steep hike in gold prices. The prices of the precious metal surged as the supplies witnessed constraint after coronavirus spread in oil-producing countries after China and other Asia Pacific countries, said Chairman of All Pakistan Supreme Council Jewellers Association.
He said that gold is being sold at a discounted price of Rs. 1800 at major shops mainly to continue the sale of jewelry to the buyers that previously booked the orders. The overall sale of jewelry dropped considerably in the local markets as customers avoided purchasing gold.
He added that the purchasing power of the public has also decreased from previous years due to prevailing high inflation and cost of living that have taken a toll on the sale of gold jewelry throughout the country despite the wedding season.
The consistent high prices of gold is hurting the business of small dealers in the local market, which may trigger the slowdown of the gold business and subsequently unemployment in the local markets, he added.
The price of gold in the international market has surged to its highest level in seven years as worries about the coronavirus led investors to seek a safe place for their money. Gold prices climbed more than 2.5% on Monday to levels not seen since February 2013.
The price went as high as $1,690 an ounce. At the time of filing this report, gold was trading at $1684 on Monday.