Gold rates shot up Rs4,800 per tola, the All Sindh Sarafa and Jewellers Association (ASSJA) said Wednesday, with prices around the world surging to their historic high as economic woes and resurgence in coronavirus cases kept investors on edge.
With the latest bump, gold is now priced at Rs128,700 per tola.
On the other hand, the international gold prices have gone up $66 an ounce to a little over $2,041.
Gold hits $2,000 an ounce for first time
Gold prices on Tuesday hit $2,000 an ounce for the first time, the latest surge in a commodity seen as a refuge during economic uncertainty.
The precious metal hit the symbolically important benchmark near 4:15pm GMT before retreating somewhat then crossing the line again about 30 minutes later.
Gold prices have risen more than 30% this year as the coronavirus outbreak has weakened the economy and clouded the global financial outlook.
Also weighing on investors were concerns over whether the US will pass another spending measure to support the world’s largest economy as it weathers a prolonged and deadly coronavirus outbreak. Democrats and Republicans in Congress have yet to strike a deal despite days of negotiations.
“The gold price is viewed as buying opportunities,” Commerzbank said in an analysis.
“This comes as no surprise in view of the ongoing high numbers of new COVID-19 cases, the continuing cliffhanger in US Congress over an additional economic aid package, ever more widespread negative real interest rates and highly-valued stock markets.”
Wall Street stocks were cautiously advancing around 1645 GMT with the Dow up 0.4% as traders digested reports claiming recent progress towards a deal in Washington.
“There’s a big desire from both parties to get some kind of stimulus passed. I think the market is expecting that,” said Bob Phillips of Spectrum Management Group.
Key figures around 3:40pm GMT
- London – FTSE 100: UP 1.1% at 6,104.72 points (close)
- Frankfurt – DAX 30: UP 0.5% at 12,660.25 (close)
- Paris – CAC 40: UP 0.9% at 4,933.34
- EURO STOXX 50: UP 0.4% at 3,268.38
- New York – Dow: UP 1.2% at 27,153.45
- Tokyo – Nikkei 225: DOWN 0.3% at 22,514.85 (close)
- Hong Kong – Hang Seng: UP 0.6% at 25,102.45 (close)
- Shanghai – Composite: UP 0.2% at 3,377.56 (close)
- Euro/dollar: UP at $1.1896 from $1.1798 at 2100 GMT
- Dollar/yen: DOWN at 105.44 yen from 105.64 yen
- Pound/dollar: UP at $1.3138 from $1.3060
- Euro/pound: UP at 90.56 pence from 90.33
- Gold: UP at $2,061.50 an ounce from $2,019.21
- West Texas Intermediate: UP 3.7% at $43.25 per barrel
- Brent North Sea crude: UP 3.5% at $46.00