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KARACHI: Gold prices hit another record peak in the country’s history to Rs31,050 per tola on Wednesday as compared to Rs30,550 per tola on Tuesday on the back of surging world bullion prices.
From Sept 3, when the precious metal was priced at Rs30,000 a tola, prices have recorded an increase of Rs1,050 till Wednesday.
The 10 gram rate has surged to Rs26,614 from Rs26,185 while in the international market, according to traders, it has soured to $1,016.50 an ounce as compared to $996 the other day.
All-Pakistan Gem Merchants and Jewellers Association chairman Saeed Mazhar Ali said for the last three to four days, ‘there are more sellers than buyers of the precious metal in markets.’
He claimed that some people are coming to sell their gold jewellery to get some handsome returns, but ‘a majority of the consumers are selling their sets either under some compulsion, financial crunch or domestic problems.’
The weakening of dollar against European currencies, investors’ rising interest and Chinese buying for piling gold reserves were the main reasons of pushing up yellow metal rates in world markets, he said.
Saeed said gold sales, which were earlier projected to increase during the last week of Ramazan, remained slow as people were now more interested in meeting their basic requirements for Eid instead of focusing on gold buying.
The real picture regarding gold sale would be visible after Eid when wedding season would be in full swing, he said.
Like international market, many cash rich people are investing in Pakistan despite the fact that many investors have focused towards stock market after rising share prices.
All Karachi Saraf and Jewellers Group President Haji Haroon Rashid Chand said: ‘People are coming to sell their jewellery and gold bars instead of making any fresh purchases.’ Perhaps many people have planned to visit markets after Eid in anticipation of some cut in prices.
He said gold price had risen by Rs8,550 per tola if it is compared with last year’s Ramazan when the rate was Rs22,500 per tola.
Due to massive price-hike in commodity prices and other items during the holy month, consumers’ presence at gold shops has been negligible.
He claimed that gold is selling under cost in Pakistan by Rs350 per tola if compared with rates in Dubai.
Former chairman of APGMJA, Raisuddin Shaikh, said people have literally curtailed purchase of gold jewellery in the last two to three years after surging food inflation and some cash flow problems.
The traders who claim increase in sale of jewellery sets are trying to hide the market reality, he said, adding due to liquidity crunch, people are not investing in gold.
He said consumers are now more interested in purchasing artificial jewellery sets, especially for weddings and Valima receptions, rather than buying genuine gold sets.
Due to non-availability of any authentic data about sale and consumption of gold in Pakistan, traders usually make wild guesses based on market situation. Link...