Gold prices reaches to all time high to 100,400 per Tola in Pakistan
The gold price in Pakistan has reached to all time high prices to Rs. 100,400 on Wednesday. This is heading towards recession amidst the coronavirus spread in the country.
According to rates issued by All Sindh Saraf Jewellers Association, prices moved up by Rs700/tola on Tuesday. Rate of 10-gram gold rose Rs600 to Rs86,076.
According to financial analysts even investing few thousands in the gold purchase during coronavirus situation in Pakistan, can repay in lac in Pakistan after the coronavirus situation.
In the international market, bullion surged $31 to $1,721/ounce. The local market, however, remained closed due to the lock down imposed in the country to contain the spread of the virus.
According to CEO Arif Habib commodities, there is shortfall of gold in the country and secondly the devaluation of Pakistani currency which is the sole reason of increase of gold prices in Pakistan. This increase of gold price has basically caused the economy to the brink of recession as the gold price increase , undoubtedly, leads towards inflation in the country and could cause hyper inflation in Pakistan.
Moreover, previously, the gold price in the international market was $1923 per ounce and the rate per tola was Rs. 64,000 per tola in Pakistan, but at that time, the currency value was appreciated against dollar in Pakistan.
Inflation in Pakistan due to corona virus:
The latest report by the World Bank added that the measures such as lock down, state of uncertainity, social distancing has hampered the supply chain of food and other basic necessities to public. Meanwhile, the supply is also much slower compared to other parts of the world.
The World Bank in its latest report also said that the unusual 13 percent price hike of wheat has also interrupted the supply chain in the country. Moreover, the global lender also warned the country that the food prices in coming weeks may surge exponentially to the uncontrollable mounts.