KARACHI: Gold rose on Monday boosted by concerns regarding uncertain economic conditions which have once again sparked a flight from risky commodities towards safer ones.
Gold prices in the local bullion market recorded an increase of Rs300 per tola and Rs257 per 10 grams to settle at Rs123,300 per tola and Rs105,710 per 10 grams.
On Saturday, the yellow metal closed at Rs123,000 per tola and Rs105,453 per 10 grams.
AA Commodities Director Adnan Agar had said: “Gold is once again attracting safe-haven investment and price of gold will increase further.”
“Inflation is always a favourable scenario for gold,” Agar had said, adding that concerns regarding an economic slowdown in Pakistan and worldwide was adding fuel to the uptrend in gold prices.
Local dealers had also said that the return of inflationary days in Pakistan and around the world has once again invited investors’ attention towards the yellow metal as, at such a time, safer commodities become attractive.
The price of gold in the international market slightly dropped by $1 settling at $1,817 pressured by rising US yields, although expectations that key central banks will keep interest rates low in the near term-limited losses of the non-yielding asset.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,440 per tola and Rs1,234.56 per 10 grams.