(CTN News) – Gold prices hit record highs on Monday in both domestic and foreign markets as a result of falling currency values and rising international tensions.
The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reports that the price of gold per tola has set a new record of Rs357,800. In comparison to the previous level, this indicates an increase of Rs8,100.
This comes after a stretch during which prices were steady at Rs349,700 per tola on Saturday.
Gold prices have risen to Rs 350,000 for one tola.
Gold Prices have been rising gradually in Pakistan and has already hit $3,395 per ounce on the global market. The daily gain is $69 when this is included.
APGJSA President Muhammad Qasim Shikarpuri said the “escalating economic tensions” between the US and China were the catalyst for the meeting. “Gold prices have attained unprecedented levels in both domestic and international markets,” he said. He claims that because reaching a solution would have dire economic repercussions for both countries, the US and China are unwilling to do so.
China and the U.S. are in an impasse.
He warned that if the current state of affairs continues, it may lead to a worldwide financial disaster. Shikarpuri told reporters that tensions over tariffs are driving the sharp rise in gold prices, which is causing currencies all around the world to depreciate.
Furthermore, he issued a warning that if the Gold Prices kept rising, Pakistan’s currency exchange rate would become unsustainable. It will be more challenging to control the exchange rate if gold hits Rs450,000 per tola, which is anticipated to happen this month.
There is a good chance that the rupee-dollar exchange rate will rise significantly. Shikarpuri said that there is a chance that gold prices would have a slight correction, but that this correction will not indicate a drop but rather a brief lull before a subsequent rise.
According to the economist, if substantive negotiations between the United States and China are not held, gold prices will continue to rise.
The domestic market is now experiencing a shortage of goods. Even though there is a limited quantity of gold in the real world, investor demand is still very high. He saw that anytime there is a lack of supply, buyers get involved. As long as Gold Prices in other nations do not fall, local Gold Prices will continue to rise.
He cautioned investors against selling their gold holdings due to the high demand in the local market and the restricted availability. A decrease in the value of the dollar and increased concern about the economic effects of trade disputes between the US and China increased demand for safe-haven metals.
Gold broke the previous peak on Monday, reaching a record high of almost $3,400. At 14:46 GMT, the price of gold, which is currently $3,415.24 an ounce, rose 2.6%.
Gold prices hit a new high at $3,424.25.
At $3,426.30, the price of U.S. gold futures increased by 3%. As a result of President Donald Trump’s remarks about Federal Reserve Chairman Jerome Powell, which further damaged investor confidence in the US economy, the value of the dollar fell.
As the dollar’s value continues to decline, holders of competing currencies find bullion increasingly appealing. The Pakistani rupee had a slight decrease in value of 0.05% against the US dollar on Monday’s interbank market.
At the end of trade, the value of the local currency was 280.87 paisas versus the US dollar. Compared to Friday’s closing rate of 280.72 paisas, this indicates a 15-paisa drop.
A decline in investor sentiment, sparked by worries about President Trump’s plans to change the Federal Reserve and possibly threaten the central bank’s independence, coincided with a decline in the value of the US dollar on global markets.
SOURCE: TN
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