Daily Times

KARACHI: International gold market responded positively over Donald Trump’s election as the 45th President of the United States of America (USA) and it is expected to go up to $1,500 per ounce in the coming days, said experts.

Gold increased in early trading on Wednesday as Donald Trump’s shock win in the USA presidential election prompted investors to flee to safe havens. However, after the Trump’s victory speech, anxiety is easing and the metal has given up most of its earlier gains. It is currently trading at over $1,300 per ounce, compared with $1,275 per ounce before the vote counting began.

In Pakistan, the gold price in the local bullion markets hits fresh peak of Rs 52,200 per tola, increased by Rs 500 on the back of ongoing developments in USA. The 10 gram gold price also rose to Rs 44,742. The international bullion market witnessed $25 surged in the price of gold in a single day.

All-Pakistan Supreme Council of Jewellers Association President Alhaj Haroon Rashid Chand said gold price is expected to bounce back in coming months as international bullion market reaction over Trump’s victory signals that yellow metal rice likely to hit $14,00 to $15,00 per ounce in the offing. He predicted that gold price would further surge in the coming weeks up to Rs 55,000 per tola in local bullion market.

Chand was of the view that consumers’ purchasing power has been shrinking due to rising inflation while following increased taxes on the real estate sector; it is expecting that gold would be a safe-haven for investors.

Owing to rising gold price trend in international bullion market, investors in Pakistan could consider gold as safe investment whereas on the other hand retail gold markets in the city are facing snags due to recent spike in street crimes and shop thefts.

Equity markets are down notably in Asian and early European trading. Gold has, by contrast, increased, outperforming other assets, including other safe havens.

“Short term volatility in the wake of this election is inevitable, as it signals a major political and economic change. Gold trading volumes have risen sharply in Asia. Western markets, which have just opened, will likely see a continuation of that trend,” said World Gold Council Director of Investment Research Juan Carlos Artigas. “We are seeing increasingly fractious politics across the advanced economies, and this trend, combined with uncertainty over the aftermath of years of unconventional monetary policies measures, will firmly underpin investment demand for gold in the coming years.”