The gold price maintained its uptrend in the domestic market on Tuesday as the precious metal soared Rs2,250 to a new peak of Rs113,500 per tola as investors’ flight to safety continued.
Cumulatively, in the past five trading sessions (Wednesday to Tuesday), the gold price has registered an increase of Rs4,300, according to the All Sindh Saraf and Jewellers Association.
Speaking to The Express Tribune, Mafa Capital CEO Adnan Agar said Covid-19 cases were still rising rapidly in the US due to which dollar was weakening in the international market.
“This has triggered a flight to safe-haven assets, hence, investors are pulling their investments from other securities and buying gold,” he said. “The rise in international gold prices has caused an increase in the local market as well.”
Echoing his views, Arif Habib Commodities Managing Director and CEO Ahsan Mehanti emphasised that the jump in gold prices had a direct impact from coronavirus. Internationally, virus cases are still soaring and there is widespread economic uncertainty, hence, gold has turned into an attractive commodity. Economic indicators in the US, in particular, remain dismal, triggering a rally in the gold market.
Published in The Express Tribune, July 22nd, 2020.
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