Gold glitters amid global conflicts

KARACHI: Gold rates jumped by Rs3,400 in a day as investors flocking to save havens amid geopolitical tensions in Ukraine.

According to data released by All Sindh Saraf Jewelers Association (ASSJA), gold rates in the local market moved up to Rs130,300 per tola on Thursday.

Muhammad Shafi Khan, a senior goldsmith, told The News that the current increase was the result of tensions between Russia and Ukraine. “The prices would likely further increase if the tension persists,” he said.

Price of 10-gram gold also increased by Rs2,915 to Rs111,711. In the international market, gold rates increased by $77 to $1,972 per ounce.

Silver rates also rose by Rs30 to Rs1,490 per tola. The price of 10-gram silver increased by Rs25.72 to Rs1,277.43.

Local jewelers said gold rates in the local market remained lower by Rs4,000 per tola, compared with the rates in Dubai gold market.

Gold prices in Pakistan had increased to an all-time high to Rs132,000 per tola in August 2020 when the pandemic hit trades, and investors found a safe haven in gold.

Shafi Khan said global politics heavily affected gold prices. Prior to Russia and Ukraine conflict, the trade war between the US and China had affected the commodity rates in the international market, and the local market gets direct effect from it, he added.

He shared that at the beginning of the tensions a few days back, the market had also tested $1900 per tola, where it reached after a long time since peak of the pandemic.