Gold prices skyrocket to over 100000 per tola in Pakistan
The gold prices continue to see an upward surge around the globe and are constantly increasing.
Despite lockdown in Pakistan and no jewellery shop or market open, the gold prices have crossed 100000 per tola mark for the first time ever. According to Sindh Sarafa (Jewellers) Association, as per the trend in the world market the price of the 14-carat gold has been determined as 100400 per tola in the country.
The association said the new gold rate for Pakistan market would be determined on the day when the markets will reopen after the lockdown in accordance with the rate in the world market.
Earlier, gold struck a seven-year pinnacle above $1,700 an ounce Tuesday as massive Fed stimulus floods markets with dollars, weakening the greenback and sending investors running to the precious metal.
Gold rallied to $1,731.25 an ounce on the London Bullion Market, striking a peak last seen in November 2012. The dollar slid against main rivals Tuesday in the wake of the Federal Reserve's ongoing stimulus policies that are aimed at cushioning the blow to the world's biggest economy from the deadly COVID-19 outbreak.
This has made dollar-denominated commodities like gold cheaper for buyers holding rival currencies. "Gold has been staging an impressive rally," said Jasper Lawler, head of research at traders London Capital Group. "For us, the common denominator is the... new programmes introduced by the Federal Reserve. More dollars swirling around in the system have devalued the dollar."
ActivTrades chief analyst Carlo Alberto De Casa said gold was buoyed purely by the US central bank's stimulus rather than investors shunning risky assets -- with gold traditionally seen as a haven investment in times of economic unrest.
"Gold is skyrocketing... (but) this new rally is not related to a swift return of risk-off, but instead driven by the huge increase of the Federal Reserve's balance sheet," he said.