KARACHI: The value of gold was up by more than two percent both in the international and local markets on Monday, traders in Pakistan said, as growing concerns that the coronavirus outbreak could impact the global economy pushed investors toward safe havens.

Gold was trading at $1,685 per ounce (OZ), up by 2.49 percent on Monday afternoon in the international market, while rates jumped by Rs 2,000 per tola (11.66 grams) in Pakistan to an all-time high of Rs96,300.

Global concerns of an economic slowdown stemming from the outbreak of coronavirus have rattled commodity markets and pushed oil and metal prices down. But gold, traditionally seen as a safe store of value during times of turmoil, has become more popular as other assets offer low returns.

“People are moving to hold safe assets after international institutions predicted the impact of coronavirus that is hampering global economies,” CEO of Arif Habib Commodities, Ahsan Mehanti, told Arab News. “People are selling currency to buy gold because when global growth weakens they invest in safe assets and that is gold generally.”

A Reuters poll in January said gold prices would hold above $1,500 an ounce this year and make modest gains in 2021 as low-interest rates and geopolitical uncertainty bolstered its appeal.

“Gold has re-established its safe-haven status,” Standard Chartered analyst Suki Cooper told Reuters last month. “We expect gold to test seven-year highs in 2020.”

The trend, Pakistani analysts say, shows that gold prices will continue to climb toward $1,700 an ounce.

“Prices have risen even above the reach of average investors. In the wedding season, the demand for gold spikes but now business is down to around 20 percent,” said Hajji Haroon Chand, president of the All Sindh Saraf Jewellers Association. “Only rich investors are buying gold now because at Rs 96,300 per tola, it is beyond the purchasing power of small investors,” Chand added.

On Monday, energy prices tumbled by more than three percent as brent crude traded at $55.87 per barrel while US WTI crude was down 3.58 percent to $51.47 in afternoon trade according to Pakistan Standard Time.

Pakistan’s equity market also closed down by 1105 points or 2.75 percent on Monday as coronavirus triggered sell-off.

“The market is down because investors fear that coronavirus from Iran may affect Pakistan also,” Muhammad Sohail, CEO of Topline Securities, said. “Global markets are down as virus cases rise.”

Iran, which borders Pakistan, said on Monday that the outbreak had killed at least 12 people, the largest number of coronavirus-linked deaths outside China.