Gold prices hit record peaks in Pakistan as the yellow metal leaped to another historic high of Pak Rs 31,900 per tola on Tuesday.
One Pakistan Tola, the local benchmark for gold, is equal to 11.6 grams.
Analysts said this drastic increase in the rate is said to have been caused by the falling dollar and increasing oil prices in the international market.
Pakistan’s gold market opened at Pak Rs 31,250 per tola and jumped by Pak Rs 350 to Pak Rs 31,600 and by the time the bullion market closed the yellow metal had risen to Pak Rs 31,900, registering an increase of Pak Rs 650 in a day.
In the international market, gold hit $1,040 per ounce after opening at $1,020. However, gold is still Pak Rs 500 cheaper in Pakistan as compared to Dubai, the main hub for bullion supplies in the local market.
Gold hits peak in London with buying fuelled by dollar weakness after a report, later denied, that Gulf Arab states were considering abandoning dollar for oil trade.
Both spot gold prices and US gold futures have benefited from a convergence of factors including the dollar’s decline, technical buying momentum and worries about potential inflation as central banks struggle to emerge from unprecedented fiscal stimulus measures.
This article taken by commodityonline.com