Gold prices continued to rise unabated in the global market which resulted in a whopping increase of Rs. 4,800 per tola in the local market, reaching a price of Rs. 128,700 per tola.
According to the Karachi Sarafa Association, trading in gold biscuits and jewelry is being carried out at a price that is Rs. 1,000 lower in the local market in order to attract customers. The actual prices could have been increased by Rs. 5,800 per tola.
The trend of the purchasing of gold jewelry and gold biscuits is not as prevalent as last year however the trend of purchasing the precious metal is picking up in the local market due to the wedding season despite the COVID-19 outbreak and its restrictions.
During May and June, gold was not being imported due to COVID-19 through legal channels, according to data of Pakistan Bureau of Statistics. The overall import of gold in Pakistan fell to 275 kg in the financial year 2019-20 compared with 335 kg in the previous financial year through legal channels.
Gold in Pakistan is being traded through informal channels usually from Dubai. Besides, the investors and people selling their savings of gold to the traders plays a role in meeting the demand of the local market.
Internationally, prices are surging, reaching over $2,041 per ounce as the investors are making their investments in the yellow metal as a safe-haven.
Analysts believe that the economic slowdown in developed countries pushed investors to make their investments in gold from various financial and investment products.
The cases of COVID-19 are on the rise in the USA whereas in the local market there is a growing fear that a second wave could emerge that may derail the economic recovery in the country.
Overall, gold prices are likely to continue their upward trajectory in the next couple of weeks and years with the possibility of volatile trends.