Gold Price’s Hawkish Rally Continues, Up by Rs 2,300 to Surpass Rs 250k Per Tola

Mon May 20 2024
icon-facebook icon-twitter icon-whatsapp

ISLAMABAD: After an increase of Rs 3000 on Saturday, the per tola gold price witnessed another significant jump by Rs 2300 in the local market to settle at Rs 250,400 on Monday amid the rapid increase in the international market being deeply influenced by Chinese stimulus.

In the last two to three days, the price of the precious metal in the international market took to a new record high due to strong Chinese data the other day. The status of the safe heaven went further higher over recent Middle East tension including the tragic incident of the Iranian President coupled with the possible Fed rate cut in the US.

Accordingly, in line with these reasons, the price of the precious metal is likely to remain above $2400 per ounce in the coming few days and even could go towards $2500 per ounce which could take the price in Pakistan to above 2,70000 per tola in near future.

In the local bullion market, the price of the gold went to Rs 252,200 per tola last month.

Meanwhile, the rates for the 10-grams of the precious metal increased by RS 1,972 to settle at Rs 214,678 as per reports received from the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

However, the price of the per tola silver unexpectedly remained constant at Rs 2,850 per tola as in the European, US and Indian market price of the silver also went up like that of the precious metal.

Gold Price in International Market

The increase in the local market was due to the rapid increase in the price of gold in the international market, where the price of the precious metal went up by $25 on Monday to reach another historic high at $2,439 per ounce. On Monday, soon after the opening of the European market, the price of the precious metal once crossed $2,439 per ounce followed by a little correction towards $2,435.

Earlier during the last several months, the international market observed a historic record high a number of times including the latest one where the rates for the yellow plates surpassed $2430 per ounce.

The international market for the yellow plates remained highly volatile recently due to a number of reasons including investment from the Chinese investors (two months before) as their stock market went down and they turned to invest in the safe haven.

Meanwhile, a number of private banks in the US also chose to invest in the yellow metal taking its price first above $2300 and then even above $2400 per ounce.

During the last couple of weeks, the price of gold in the international market witnessed a significant upward trajectory that affected most of the gold markets across the globe. After a major hawkish rally, its price increased by over $280 per ounce during the last six to seven weeks. The Price for the yellow metal then went down to $2300 a couple of weeks before.

However, after a continuous increase during the last couple of weeks, followed by the involvement of Chinese investors price of the precious metal jumped again passed $2400 per ounce and reached a new historic high.


icon-facebook icon-twitter icon-whatsapp