Gold price surges by Rs750 per tola

04:16 PM | 1 Aug, 2020
Gold price surges by Rs750 per tola

The gold price has increased Rs750 per tola and reached Rs123,500, according to gold rates shared by the All Sindh Saraf Jewelers Association (ASSJA).

Earlier, gold prices reached an all-time high on Monday, taking a big jump of Rs5,100 from the previous working day to reach Rs123,800.

The price of gold has been on the rise ever since the rise in COVID-19 cases, especially in the US, and experts believe the prices of gold will continue to rise until COVID-19 cases peak.   

Rashid Ali, head of business development at HG Markets, says the reason behind this recent hike in gold prices is due to the US-China trade war as well as aggravating diplomatic ties between the superpowers. "Both countries also ordered the closure of each other’s consulates in Houston and Chengdu amid allegations of espionage last week," he said this while talking to Samaa Tv.

The flock of investors to the safe-haven yellow metal has been boosted by a weak dollar, which fell to its lowest level in over a year, and hopes that the Federal Reserve will keep a policy that helps the economy recover from the impact of the COVID-19 pandemic. The bullion is considered a safe and secure place to invest, especially during times of crisis.

Rays Commodities COO Adnan Agar says the reason gold prices have been increasing and broke all-time records is because of fears of a second wave of the coronavirus as cases increase in some countries.