The gold price in Pakistan has hit an all-time high of Rs. 206,500 per tola, causing concern among investors and traders alike. The price of gold has been steadily increasing over the past few years, but the latest surge has been particularly steep, with a 10% increase in just the past few weeks.
Experts believe that the current surge in gold prices is largely due to the global economic uncertainty caused by the COVID-19 pandemic. With countries around the world struggling to contain the virus and keep their economies afloat, investors are turning to gold as a safe-haven asset.
The rise In gold prices is also being driven by the depreciation of the Pakistani rupee against the US dollar. Since gold is traded in dollars, a weaker rupee means that it takes more rupees to buy the same amount of gold.
The Increase in gold prices has had a significant impact on the local market, with many traders and jewelers reporting a decline in sales. Consumers are reluctant to buy gold at such high prices, and many are instead choosing to invest in other assets.
Despite the challenges posed by the current economic climate, many analysts remain optimistic about the long-term prospects for gold. With the global economy in a state of flux, investors are likely to continue to seek out safe-haven assets like gold for the foreseeable future.
In the meantime, traders and consumers in Pakistan will need to adjust to the new reality of high gold prices. While the short-term impact may be challenging, there may be opportunities for those who are able to adapt and navigate the changing market conditions.