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Friday December 09, 2022

Gold gains as political woes persist amid PTI's long march

Gold is often seen as an alternative investment during times of political and financial uncertainty

November 16, 2022
A representational image of gold bangles. — AFP/File
A representational image of gold bangles. — AFP/File

KARACHI: Gold continued to shine in the domestic market for the fourth consecutive day on Wednesday amid political uncertainty and the PTI’s ongoing long march toward Islamabad.

Gold is often seen as an alternative investment during times of political and financial uncertainty. Cumulatively, the precious commodity has gained Rs3,450 per tola during the last four sessions.

Analysts continue to see safe-haven demand (for gold) because the uncertainty over how the political developments are going to play out is extremely high.

Data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold surged by Rs1,850 per tola and Rs1,586 per 10 grams to settle at Rs158,850 and Rs136,188, respectively.

PTI resumed its march towards Islamabad after a slight break due to an attack on party chief Imran Khan.

Mounting fears over the economic toll from the long march, exacerbated by the depreciating rupee have put safe-haven bullion on track.

The price for local markets is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and demand and supply in domestic markets.

In the international market, the price of the yellow metal rose by $7 per ounce settling at $1,782.

The precious commodity's rates in Pakistan are around Rs5,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,690 per tola and Rs1,448.90 per 10 grams.