The nonending rise of gold in Pakistan and around the world have left many baffled, as the precious yellow metal continues to set new price records with each passing day.
As per the latest figures, spot gold at global markets rose 1.5 percent to $1,928.83 per ounce on Monday, after hitting an all-time high of $1,933.30.
Meanwhile, a similar trend was witnessed in Pakistan with gold prices reaching an all-time high as the per-tola price of the gold on Saturday reached Rs120,500, after an increase of Rs1,800 in a single day. According to Sindh Jewellers Association, the price of 22-carat gold has reached Rs 110,458 per 10 grams.
However, what is driving this rise in gold prices, to this query experts have identified several factors, as they believe that the main reasons behind it are the rising tensions between the US and China over the past week, alongside depreciation of the US dollar, and the economic crisis caused by the Coronavirus pandemic.
And unfortunately, none of these factors are moving towards improvement as coronavirus continues to take its toll, and tensions between two of the world’s largest economies worsen.Therefore, investors are shifting their money to something much safer, and gold is there best option.
It may be recalled that last week, the United States had ordered China to immediately close its embassy in Houston, in response to which China also issued orders to close the US embassy in Chengdu.
After this tension, the majority of investors started shifting their capital from dollars to gold, while the value of the dollar also began to fall.
Keeping the current scenario in perspective, it is still unclear whether the price of gold will remain the rise or fall in the near future.
According to Forbes, this week is very important in this regard as the US Federal Reserve Bank will also announce interest rates on Wednesday. It is hoped that the Federal Reserve will not change interest rates.
This announcement is important because changes in interest rates affect the value of the dollar and also affect gold prices.
According to the report, gold prices are expected to rise and may rise from between to $1950 an ounce to a whopping $2,000 an ounce.