Rising gold prices stop jewelry production

Karachi: Investment in gold has become a major attractive investment sector not only in Pakistan but also in the world. Investors not only consider it a safe asset for themselves but also call it a good business.

For the first time, gold has crossed the $4,000 per ounce mark in the global market due to investors’ investment in this sector. The indication of a reduction in interest rates in the US, the shutdown, and the American tariff war have attracted investors in this direction.

Experts say that investors are worried about global trade tensions and geographical conditions, due to which people are flocking to the field of buying gold.

Due to this race among investors, the price of gold is continuously moving upwards, surpassing platinum.

Due to the effects of the increase in the global market, the price of gold is also continuously increasing in the local market.

According to the All Pakistan Gem and Jewelers Association, when the dollar weakens, the demand for gold increases in the world. Trump's trade war is weakening the dollar, and investors are attracted to gold instead of the dollar.

Regarding the effects of the rising price of gold in Pakistan, the Jewelers Association says that gold is no longer bought for wedding ceremonies. Gold jewelry has stopped being made, jewelers have become unemployed, and 50 percent of jewelry factories have closed because only investors are buying gold in Pakistan.

The association says that the middle class is investing in silver. Jewelers are most worried about the price of gold because their business has come to a standstill.