Gold rates shoot to all-time high in Pakistan

KARACHI: Gold rates in Pakistan on Thursday shot to an all-time high of Rs109,100 a tola as the world economy heads on unfazed towards a coronavirus-fueled recession.

According to rates issued by the All Sindh Sarafa and Jewellers Association (ASSJA), prices moved up Rs800 per tola on Thursday. The price of 10 grammes of gold was also bumped up Rs686 to Rs93,536.

In addition, the international gold rate has gone up to $12 an ounce to almost $1,814.

On the other hand, the dollar fell Rs0.18 in the interbank market to clock in at Rs166.58 by the closing bell.

The yellow metal stayed above $1,800 in the global markets — close to nearly the nine-year peak hit in the previous session — as fears of economic stagnation grew owing to the skyrocketing coronavirus cases.

Concerns over global economic recovery

Investors immediately bolted for safety from the novel virus while central banks around the world poured in powerful stimulus to cushion the pandemic's economic fallout.

Spot gold was little changed at $1,809.19 per ounce at 1133 GMT. It had climbed to its highest since September 2011 at $1,817.71 on Wednesday. US gold futures were 0.3% lower at $1,816.

Last month, gold rates had shot to Rs105,100 a tola and Rs90,106 per 10 grammes before falling to Rs104,100 a tola and Rs89,506 for 10 grammes as of June 29.

The rising number of coronavirus infections and deaths have consistently fueled concerns about the prospects for an economic recovery around the world.

Year-to-date (YTD), one-tola and 10-gramme gold rates have respectively shot up as much as Rs20,150 and Rs17,276, with figures reported to be at Rs88,150 and Rs75,574, as of January 1, 2020.

On January 1, a dollar was equal to Rs154.99 as opposed to Rs167.24, as of reporting time.