KARACHI: The per tola and 10 gram gold prices on Tuesday broke all previous records, reaching Rs113,500 and Rs97,308 respectively, as world rate of the yellow metal hit a nine-year high.

Tuesday’s per tola and 10 gram gold prices saw an increase of Rs 2,250 and Rs 1,929 from Monday.

All Sindh Saraf Jewellers Association issued a higher domestic price following a jump of $12 per ounce to $1,825.

Rising world prices of the yellow metal and increasing dollar value against the rupee is also putting local bullion rates under pressure.

Gold rose more than one per cent to a nine-year high on Tuesday, propelled by a softer dollar and expectations of more stimulus measures to resuscitate pandemic-hit economies, while silver sprinted past $20 for the first time since September 2016, a Reuters report said.

Spot gold gained 1.1pc to $1,834.80 an ounce by 1217 GMT, having touched $1,841.01 for its highest since September 2011. US gold futures rose 0.8pc to $1,831.60.

“Gold is deriving strength from a broadly weaker dollar despite the improving market mood,” FXTM analyst Lukman Otunuga told Reuters. “The fundamental themes weighing on global sentiment remain intact, with rising coronavirus cases in the largest economy in the world fostering a sense of unease.”

Dollar eases

The dollar eased 0.1pc against major currencies after touching a more than four-month low, the report said.

Gold’s advance defied a gain in global equities on the European Union’s 750 billion euro ($857bn) stimulus plan and hopes for coronavirus vaccines.

Gold is finding support from discussions about new fiscal stimulus, said UBS analyst Giovanni Staunovo.

Widespread stimulus tends to support gold because the metal is widely viewed as a hedge against rising prices and currency debasement. Analysts, however, remain divided on the outlook for inflation.

Silver surged 5.2pc to $20.94 an ounce after reaching its highest since July 2016 at $21.04. Palladium jumped 3.5pc to $2,125.78 an ounce after touching its highest since April 21. Platinum rose 2.1pc to $861, having earlier touched its highest since March 11.

Published in Dawn, July 22nd, 2020