Safe haven gold holds strong amid global market turmoil

August 05, 2024 (MLN): Gold was largely unscathed from the global market turmoil, and remained close to its record high in both the global and local markets.

The Karachi Sarafa Association reported that 24-karat gold was being sold at Rs256,500 per tola, down a mere Rs300. Globally, spot gold held near $2,425 an ounce.

Most financial markets tumbled at the start of a new week as fears of a deeper US economic slowdown and rising tensions in the Middle East prompted investors to shun risk assets.

US stock futures were trading lower, with the Nasdaq 100 down over 4%, set for its biggest opening drop in more than four years.

Japan's benchmark stock index closed 12.40% lower, its largest one-day fall since October 1987.  Taiwan’s benchmark stock index plunged 8.4%, marking its worst selloff since 1967.

Cryptocurrencies also tumbled, with Bitcoin down more than 12% and saddling second-ranked Ether experiencing its steepest fall since 2021.

Oil also extended losses from the lowest close in seven months, with Brent falling 2.2% towards $75 a barrel.

The VIX index which measures market volatility jumped 48% to 34, after rising as high as 41.8, the highest since 2020.

Silver prices remained unchanged in the domestic market, with 24-karat silver being sold at Rs2,900 per tola and Rs2,486 per 10-gram.

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