A sharp increase in gold prices-When is a good time to purchase gold?


The gold price in Pakistan has been hitting a new high since the beginning of this year. Today Gold rate in Pakistan is Rs. 75,700 per 10 grams and Rs. 88,300 per tola. The rates are normally the same all over Pakistan as shown in the table.

Pakistani traders adjust gold prices based on movements in the international market and fluctuation in the dollar rates as well as market forces of demand and supply. The rise of the dollar explains much of the corresponding increase in gold prices.

Research has shown the Golden Triad of Gold’s Drivers, that the most important elements in the gold puzzle are: the real interest rates, the U.S. dollar, and the risk aversion.

Some more key drivers lead to a high price of gold includes inflation expectations, the price of crude oil and Geo-Political Tensions.

Evidence suggests that we’ll see a significantly different monetary framework over the next five years compared to the past five years, with 2019 being the inflection point.

Gold prices show continuous fluctuation and nothing is for certain, the expectations with gold to do well in dollar terms in the coming years with a solid probability of testing new all-time highs. After accessing the gold prices from last years it can be said that the gold prices will go high. There are fewer chances of gold prices to go down.

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