In Pakistan, gold touches record high at Rs93,400 per tola

Also hits seven-year high at $1,580 per ounce in world market

KARACHI: The gold price on Monday hit an all-time high at Rs93,400 per tola (11.66 grams) in Pakistan following the precious metal tested a seven-year high at $1,580 per ounce (31.10 grams) in the world market owing to escalation in geo-political tensions.

Pakistan recorded the largest surge of Rs2,600 per tola in the past five months. With this increase, the bullion price has cumulatively soared Rs5,100 or 5.77% in the country since the US killed a top Iranian military commander in an airstrike on Friday.

Pakistan does not produce gold and completely relies on imports.

The bullion price rose $56 per ounce in the past two working days (Friday and Monday) to $1,578 at around 4 in the evening in the London market. Such a high price was last seen in April 2013, according to goldprice.org.

“Gold may hit a record high of Rs95,000 per tola in Pakistan and test $1,600 per ounce (a new seven-year high) in the international market in the coming days if the geo-political situation remains tense,” said a member of the All Sindh Saraf and Jewellers Association (ASSJA), Abdullah Abdul Razzak, while talking to The Express Tribune.

An analyst did not rule out gold touching $1,700 an ounce if war breaks out due to heightened tensions in the Middle East. The precious metal had hit the all-time high above $1,900 an ounce in August 2011.

Razzak said the speculation for massive surge in bullion price has led to uptick in demand for the yellow metal in the country. “The demand is mostly coming from investors,” he said.

The massive surge in the price has, however, badly impacted jewellers as the genuine buyers - the one who buy for wedding and for friends and family members - however have disappeared. “The surge has badly impacted purchasing price of the genuine buyers,” Razzak, who is running an ornament outlet at Tariq Road, added.

Published in The Express Tribune, January 7^th, 2020.

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