Pakistan gold price falls by another Rs2,600  - SAMAA

Pakistan gold price falls by another Rs2,600 – SAMAA

The gold price in Pakistan fell by Rs2,600 per tola since August 5. A tola of gold can now cost Rs108,600, according to the All Sindh Sarrafa Jewelers Association. 

The gold price stood at $1,742 per ounce in the international market by the time this story was filed after it decreased by another $21 on Monday. However, the gold price displayed a big fluctuation during the day, falling to as low as $1691 before recovering.  

Gold’s international price affects the prices in the
local market.

An ounce is a metric used to quantify gold in the
international market, while tola is used in Pakistan. A tola is approximately
one-third of an ounce.

“The developments in the US affect gold price,” said
Adnan Agar, who is the operations director of AA Gold Commodities. “Negative
news coming from big economies especially the US such as increasing deaths due
to the pandemic or news of political instability such as riots push the gold
price up. Positive news such as an increase in employment in the US negatively
affects the gold price.”

“The recently revealed employment data of the US was
better than expected. So, it has negatively affected gold,” he said.   

“The US economic data has revealed positive
developments,” said Ahsan Mehanti, who is CEO and MD of Arif Habib Commodities.
“Positive economic data strengthens the dollar, which negatively affects gold.”

“Moreover, the pandemic impact was now eroding off.
The number of jobs is increasing. These factors are affecting the gold price,”
he added.

The prices of gold and other precious metals go up
during uncertain times such as wars and disasters as they are considered safe
havens for investment. Their prices fall when stable times are expected ahead.
Investors turn to gold when the economy and stock market do not seem lucrative.

On the other hand, when the economy starts improving,
investors tend to switch to the capital market from gold and other metals. The
situation in the US, the biggest economy in the world, plays an important role
in influencing gold prices globally.

Agar said that Bitcoin and other cryptocurrencies have
attracted investments, which otherwise used to go towards gold during uncertain
times.

The price of gold started going up internationally as
countries across the world went into lockdowns in March 2020. It rose from
$1,471 to reach an all-time high of $2,063 an ounce by August 6, 2020. The per
tola price in Pakistan rose to Rs132,000 at the time.

This content was originally published here.

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