Gold rises Rs2,000 per tola; global rates hit eight-year high

Gold prices spiked up by Rs2,000 per tola, the All Sindh Sarafa and Jewellers Association (ASSJA) said Wednesday.

Global prices surged to their highest in nearly eight years as signs of an acceleration in the coronavirus cases kept investors on edge.

With the increase of Rs2,000, gold is now priced at Rs105,100 per tola, whereas the price of 10 grammes of gold bumped up Rs1,715 to Rs90,106.

International gold prices have gone up $20 an ounce to a little over $1,777.

Data showing several US states seeing record infections and the death toll in Latin America passing 100,000, according to a Reuters tally, fueled concerns about the prospects for an economic recovery.

The New York Times reported the European Union was prepared to bar US travelers because of the surge of cases, putting it in the same category as Brazil and Russia.

Adding to the gloom, European Central Bank chief economist Philip Lane warned that the euro zone economy would need a long time to recover from the pandemic-induced crisis and a string of solid data in recent days was not necessarily a good guide to recovery.