Gold shines again, ends day trading at Rs123,000 per tola

• Yellow metal records an increase of Rs2,800 per tola and Rs2,401 per 10 grams in Pakistan.
• The yellow metal has cumulatively gained Rs5,700 or 4.85% during the week.
• Adnan Agar predicts the price of gold will increase further, going forward.

KARACHI: The price of gold jumped Rs2,800 in Pakistan to settle at Rs123,000 per tola on Saturday in line with an increase in international prices.

Dealers suggest that the return of inflationary days in Pakistan and around the world has once again invited investors’ attention towards the yellow metal.

Gold prices in the local bullion market jumped Rs2,800 per tola and Rs2,401 per 10 grams to reach Rs123,000 per tola and Rs105,453 per 10 grams on Saturday.

A day earlier, the precious commodity closed at Rs120,200 per tola and Rs103,052 per 10 grams.

The yellow metal has cumulatively gained Rs5,700 or 4.85% during the week.

Gold recorded an increase of $26 to close at $1,818 per ounce in the international market, according to the All Sindh Saraf and Jewellers Association (ASSJA).

Earlier, speaking to Geo.tv, AA Commodities Director Adnan Agar said the high inflation rate has badly hit the purchasing power of people, hence, the local demand for the precious commodity has dropped despite the wedding season.

Going forward, Agar predicted that the price of gold will increase further.

Gold is once again attracting safe-haven investment.

Investors who used to pour money into foreign currencies, particularly in the US dollar to avoid the impact of inflation, are now buying gold because the government and the central bank have tightened regulations pertaining to the purchase of foreign currencies in the open market.

Past practices suggest that people used to take aggressive positions in gold in inflationary days.

Meanwhile, silver prices in the domestic market recorded an increase of Rs20 per tola and Rs17.14 per 10 grams to settle at Rs1,440 per tola and Rs1,234.56 per 10 grams.