Reaches Rs479,262/tola; safe-haven asset shifts to investment class in current condition
At current prices, the looted gold is worth around $70 million. PHOTO: PIXABAY
KARACHI:
Gold prices in Pakistan recorded a sharp increase on Wednesday, continuing the trend of massive fluctuations seen in recent days. The per-tola price rose by Rs15,200 to reach Rs479,262, while 10-gram gold climbed to Rs410,889 after a gain of Rs13,031, according to the All-Pakistan Gems and Jewellers Sarafa Association.
On Tuesday, gold had surged by Rs16,300 to Rs464,062 per tola. Before that, it had plunged by around Rs43,000.
The local gains mirrored movements in the international market, where spot gold rose nearly 2% to $4,554.97 per ounce after hitting a four-month low on Monday. US gold futures for April delivery jumped 3.5% to $4,553.60, as per Reuters.
Analysts said the rise comes amid easing inflation concerns following a drop in oil prices, although geopolitical uncertainty in the Middle East continues to influence market sentiment. Silver also saw a modest uptick, with prices increasing by Rs370 per tola to Rs7,824.
Adnan Agar, Director at Interactive Commodities, said that gold has shifted from being a traditional safe-haven asset to a distinct investment class, driven largely by central banks purchasing the metal to reduce reliance on the US dollar. “Historically, gold prices rose during geopolitical instability. Today, investors increasingly view it as a long-term savings and wealth-preservation tool,” he noted.
Speculation in futures markets suggests a potential downward correction in gold prices, reflecting adjustments for the next market phase. Concerns persist over the credibility of ongoing peace efforts in the Middle East, with some analysts warning that apparent diplomatic moves may be used to buy time for military deployments.
The interplay between crude oil and inflation remains critical. Rising oil prices could trigger global inflation, heavily affecting economies in Europe, the US, and Asia. Higher oil costs may force central banks to limit gold purchases or even sell reserves to cover expenditures.
Meanwhile, the Pakistani rupee inched up Rs0.01 to Rs279.21 against the US dollar in the inter-bank market.
