The price of gold dropped by Rs2,350 in Pakistan on Tuesday. A tola of gold reached Rs110,500, according to rates shared by the All Sindh Saraf Jewelers Association.
It also dropped Rs450 the previous day.
Gold prices in Pakistan respond to its international prices. The precious metal’s price has been decreasing internationally after the news of successful development of coronavirus vaccines.
The prices of gold and other precious metals increase whenever there’s uncertainty. When the world expects stable times ahead, their prices fall.
Adnan Agar, an expert on gold and other commodities, says the prices of gold and other metals have reacted to coronavirus vaccine news.
These metals are considered safe for investment. When things don’t look in favor of the economy and stock markets, investors tend to invest in gold. When the world economies are expected to improve, investors move out of gold and other metals towards capital markets.
The price of gold started increasing internationally as countries across the world went into lockdowns in March due to the COVID-19 pandemic. It rose from $1,471 to reach an all-time high of $2,063 an ounce by August 6.
But later a fall in the price of gold was also seen. It fell to $1,809 an ounce internationally by the time of filing of this report.