The critical and extremely sensitive situation between the United States of America and Iran have resulted in a price hike.
Both oil and gold prices have shot up amid Gulf tensions. Gold prices have now hit an all-time high in Pakistan costing Rs93,400/tola.
The two countries are on the brink of war after a drone strike ordered by President Trump martyred Iranian military general Qassem Soleimani last week.
As per reports, gold moved up Rs2,600 or 2.86 percent to Rs93,400 per tola from Rs90,800. Haroon Chand, President All Sindh Saraf Jewellers Association, said Iran-US tension was the major cause behind the increase in the prices.
Whenever there are uncertainty and the war-like situation around the world, people invest in gold, which is considered safe haven.
The US is not increasing interest rate, nor are there any new jobs being created, so dollar is also weakening and people are moving towards gold as a mode of investment
The price of 10-gram gold also moved up Rs2,230 to Rs80,075. In the international market, the prices of the yellow metal increased $26 to $1,578 per ounce.
Only investors were buying pure gold bars for investment purpose, while jewellery sale is down,
Less than one percent people are coming to buy gold. They have no issue with the price and can afford gold, while 99 percent people are going for artificial jewellery. – Muhammad Shafi Khan,senior goldsmith
If tensions increase and a war starts gold can go to an all-time high. If the situation calms down, it can go down $1,500 or below.
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