taking into consideration ongoing political unrest The price of gold rose by 2% as investors in the country fled to safer assets.
Gold prices (24 carat) increased by Rs 4,100 per tola and Rs 3,516 per 10 grams to Rs 208,300 and Rs 178,584 respectively, according to data released by the All Pakistan Sarafa Gems and Jewelers Association (APSGJA).
Investors have seen risk aversion as political tensions send money into safer assets.
The precious commodity rose by Rs 9,600 per tola, or 4.8%, during the week ended March 18, as gold barely responded to the Pakistani rupee’s strengthening against the US dollar. He won all six sessions.
When other markets slide, investors typically seek refuge in gold to maintain a low risk profile.
Amid political and economic uncertainty and a resurgence of International Monetary Fund (IMF) credit, Pakistan is likely to face an economic downturn.
Compared to the Dubai market, the price of gold in Pakistan is Rs 11,500 for “low cost”, indicating that Pakistan’s gold market is currently cheaper than the global level.
It could shine through the chaos as investors take a cautious stance
Meanwhile, domestic silver prices rose by Rs 100 per tola and Rs 85.73 per 10 grams to settle at Rs 2,250 per tola and Rs 1,929 per 10 grams, respectively.
Internationally, gold rose more than 2% as a wave of banking crises shook global markets and bullion was on track for its biggest weekly gain in three years, while rates were pegged to a less aggressive Federal Reserve in its fight against inflation. The price of an ounce settled at $1,989 after rising $53.
“Gold is on the back burner on fears of negative banking news coming into the weekend and hopes the Fed will hold off on raising rates next week,” said Tai Wong, an independent metals trader based in New York.