Gold price hits all-time high in Pakistan and across the globe

By: News Desk      Published: 11:19 AM, 27 Jul, 2020
Gold price hits all-time high in Pakistan and across the globe

The gold prices continued to skyrocket and broke their own all-time record as the per-tola price of the glittering metal Monday reached Rs 123,800 with an increase of record Rs5100 in a single day, reported 24NewsHD TV channel.

According to Sindh Jewellers Association, the price of 22-carat gold has reached Rs 97,294 per 10 gram.

In the international market, the gold price with an increase of $46 has increased to $1942 per ounce. This is the second time in a decade when the per ounce gold price skyrocketed. In 2011, the gold per ounce reached to $1900.

On Saturday gold prices reached Rs 120,500 with an increase of Rs1,800 in a single day while on Friday gold price reached at Rs 118,700 per tola while the 10-gram gold price has climbed to Rs101,766 per tola after an increase of Rs1,200. In the international market, the gold per ounce price with an increase of $14 has increased to $1896 per ounce.

Gold hit a record high as investors rushed into the safe-haven on concerns about China-US tensions, a spike in virus infections around the world and a lack of progress on a new stimulus bill in Washington.

After months of healthy rallies across equity markets, fuelled by trillions of dollars in government and central bank support, traders are beginning to step back as they weigh the long-term economic impact of the coronavirus.

With vast monetary easing measures put in place by the Federal Reserve pushing the dollar lower against most other currencies, gold is flying, hitting an all-time high of $1,944.71, well above its previous record of $1,921.18 seen in 2011.

Eyes are on the Fed's next policy meeting this week, with some predicting further measures to boost the economy -- possibly negative interest rates -- that could put more pressure on the dollar and send bullion above $2,000.

There are also concerns that a worse-than-forecast reading on second-quarter US gross domestic product could spark another dollar sell-off.

While the weak dollar has been a key catalyst for the metal's advance, gold has also been boosted by its attractiveness as a haven in times of turmoil with China-US relations souring by the day.

"Strong gains are inevitable as we enter a period much like the post-global financial crisis environment, where gold prices soared to record levels as a result of copious amounts of Fed money being pumped into the financial system," said Gavin Wendt, senior resource analyst at MineLife.

The greenback was down against most other currencies, with the euro at its highest since September 2018, while higher-yielding units such as the South Korean won and Indonesian rupiah were also up.