- Gold prices gain Rs650 per tola and Rs558 per 10 grams.
- Price settles at Rs128,600 per tola and Rs110,254 per 10 grams.
- Cumulatively, gold has gained Rs3,350 per tola during February.
KARACHI: Gold rose on Monday, boosted by concerns regarding uncertain economic conditions amid the Ukraine crisis, which has sparked a flight from risky commodities towards safer ones.
Gold prices in the local bullion market recorded an increase of Rs650 per tola and Rs558 per 10 grams to settle at Rs128,600 per tola and Rs110,254 per 10 grams.
Cumulatively, the safe-haven asset has gained Rs3,350 or 2.67% per tola during the outgoing month of February.
Gold is considered one of the safest investments; hence, its price is rising as an investment is pouring in at a rapid pace.
As the dollar continues to strengthen day after day, investors’ confidence in the currency has tumbled and they have diverted their investment to gold.
Earlier, speaking to Geo.tv, a gold dealer said global politics heavily affect gold prices. Prior to Russia and Ukraine conflict, the trade war between the US and China had affected the commodity rates in the international market, and the local market gets directly affected by it, he added.
He said that investors are closely watching developments regarding the Russia-Ukraine crisis.
It is pertinent to mention that the gold rates in Pakistan are around Rs3,500 below the cost compared to the gold rate in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs1,470 per tola and Rs1,260.28 per 10 grams.
Gold advances in global market as West heaps sanctions on Russia
In the international market, gold firmed en route to its best month in nine on strong safe-haven demand due to the Ukraine crisis.
The yellow metal recorded an increase of $15 per ounce to settle at $1,905.
Russia’s central bank on Monday moved to shield the economy from unprecedented Western sanctions as its invasion of Ukraine continued, bolstering other measures including an assurance it would resume buying gold in the domestic market.
Goldman Sachs expects a rally in commodities that Russia is a major producer of, as the West stepped up political and economic restrictions on Moscow.
Gold has risen about 6% so far in February in what would be its best monthly gain since May 2021, after prices soared to an 18-month high of $1,973.96 last week.
“As long as the Ukraine crisis persists, gold prices should have little trouble staying above $1,900, with a strong bias for further strides towards $2,000 if this geopolitical crisis further escalates,” Han Tan, chief market analyst at Exinity said.
“Gold bulls have fed off Europe’s worst security crisis in decades, turning the precious metal into the top-performing safe-haven.”
— With additional input from Reuters