Gold prices reach all-time high in the local markets; analysts further expect a rise in the prices of precious metal

On March 4, 2020 i.e. today, the prices of gold reached an all-time high in the local market. The price Fine gold stood at Rs.80500 per tola while that of tejabi gold stood at Rs.80200 per tola. Both precious metals have gained Rs.2200 from their previous rates. The price of silver stood at Rs.880 per tola after gaining Rs.20.

The price increase of gold can be attributed to the untimely rate cut of the US federal reserves to tackle the financial crisis. This had led to a fall in the opportunity cost of holding non-yielding assets. It has also led to rise in the prices of other precious metal in the international market.

Historically, it has been evident that during the times of global crisis, the prices of precious metal increases as people prefer to opt for safer investments like precious metal rather than risky investments. As the corona virus outbreak is getting worse by the day, it is expected that the prices of precious metal will further increase.