Gold Prices gained more 46% in 2020 as compared to the previous year; reaching the record of the all-time high of Rs128,700/tola
According to the details, gold rates in Pakistan surged following the global trends in the international market at $2,041 per ounce.
The prices peak at the back of a weaker dollar, falling US Treasury yields and the measures to revive economies around the world due to the coronavirus pandemic.
Spot gold prices rose 1% to $2,037.98 an ounce, after earlier reaching a record $2,055.10.
In addition to this, U.S. gold futures hit a record of $2,070.30 and settled up 1.4% at $2,049.30.
Market analysts said that the dollar standard of the past 50 years is being openly questioned because of the U.S. Federal Reserve’s enormous increase in the money supply.
“The dollar is collapsing under the weight of $3 trillion in printed dollars, this all comes out in the wash with higher gold prices,”.
Investors seek a store of value on fears government stimulus in response to the pandemic will trigger inflation, devalue other assets and keep bond yields low.
In the local market, Gold rates in the local market have risen to Rs128,700 per tola, while the 10-gram gold price increased by Rs4,116, reaching to Rs110,340/10 gram.
Meanwhile, silver rates increased by Rs130 to reach Rs1,630/tola.
Silver rates of 10 grams have also risen by Rs111.46 to reach Rs1,397.46/10 gram.
Gold rates in 2020 have risen by Rs40,550 per tola to Rs128,700 per tola on August 5, from Rs88,150 per tola on January 1, 2020.