Gold reaches two-year high of Rs56,200/tola.
Byline: Aamir Shafaat Khan
KARACHI -- With an increase of Rs1,000 per tola and Rs857 per 10 grams, the gold price on Wednesday stood at Rs56,200 per tola and Rs48,171 per 10 grams.
The domestic per tola gold rate has surged by Rs6,200 while 10-gram price swelled by Rs5,314 since June 1 due to an increase in the price of yellow metal in the world markets and losing value of the rupee against the dollar. The rates were Rs50,000 and Rs42,857, respectively, on June 1.
All Sindh Sarafa Association (ASSA) on Wednesday quoted world gold price of $1,286, up by $11 per ounce from Tuesday. On June 1, the price was $1,266.
However, ASSA Chairman Haji Haroon Rasheed Chand claimed that 'the current rate of Rs56,200 per tola is the highest in the last two years.'
When asked that international price did not climb significantly compared to sharp jump in domestic prices, he said the rupee devaluation of seven to eight per cent against the greenback from July to December has also impacted the domestic gold price.
Mr Chand recalled that in June this year local rate was under cost by Rs2,000 per tola than Dubai price. 'Now our local rate is higher by Rs1,500 per tola than Dubai rate,' he added.
Mr Chand said gold prices had been under pressure since the USA-Korea tension. As a result, dollar in various countries had lost its value against major currencies but in Pakistan the US currency became stronger thus making gold imports costlier.
He said buyers and investors are also putting their money in gold since its prices had been going up. He claimed that investors are pulling out money from various investment avenues to plunge in gold market. Sales of gold jewellery are also going brisk in view of the ongoing peak marriage season.
Gold import rose to 217kg ($8.768million) in July-November 2017 as compared to 164kg ($5.823m) in same period 2016.
Gold imports plunged to 440kg ($16.670m) in 2016-17 from 659kg ($24.435m) in 2015-16, figures of Pakistan Bureau of Statistics (PBS) stated.
Country's jewellery exports plunged to $1.61m in July-Nov 2017 from $3.1m in corresponding period 2016. Gem exports stood at four tonnes ($1.6m) versus two tonnes (1.48m).
A jewellery exporter said the government should amend SRO 760 which had hindered exports of gems and jewellery from Pakistan. He said huge export potential for Pakistan's gems existed in UAE, USA and Europe.