KARACHI: Yellow metal crossed Rs50,000 per tola for the third time in the current year on Friday owing to hike in its global price after Britain’s exit from the European Union (EU).

The per tola gold price swelled by Rs1,500 on Friday to Rs50,200 while 10-gram price climbed to Rs43,028, up by Rs1,286 based on world gold price that reached $1,321 per ounce, up $62 per ounce.

On Saturday, the per tola gold price fell to Rs50,000 and 10-gram price to Rs42,857, a fall of Rs171. The world gold price fell by five dollars per ounce to $1,316.

Previously local gold price hit Rs50,000 mark in first week of May and in March 2016.

The 10-gram and one tola gold prices in the first week of January this year were Rs37,971 and Rs44,300, respectively, when world gold price was $1,062 per ounce.

Gold price is crawling up, and last 10 days of Ramazan are crucial when people give advance orders for jewellery sets or purchase them on cash for post-Eid marriage season.

All-Pakistan Gem and Jewellery Merchants Association chairman Habibur Rahman said that investors rushed for a safe haven after Britain’s divorce to EU, but the situation relating to commodity prices, including gold, would become clear in the next two to three weeks.

Pakistanis have always invested in gold as many families purchase bullion for future marriage plans for their daughters. Pakistan’s gold imports in July-May 2015-16 stood at 611kgs worth $23 million as compared to 523kgs ($21m) in the same period of 2014-15. Jewellery exports during the period were $7m as compared to $6m a year ago.

According to Pakistan Bureau of Statistics, gold imports fell sharply to 578kgs ($23m) in 2014-15 from to 4,265kgs ($177m) in 2013-14. Jewellery exports plunged to $7.5m in FY15 from $323m in FY14. Habibur Rahman did not agree with the figures of thriving gold imports. He said there has been a negligible gold import in the last over five years, but the government continues to provide details of thriving gold imports, giving an impression of higher gold consumption in the country.

He said gold is arriving under an entrustment scheme (SRO 760 of 2013) in which foreign buyers supply pure gold in advance to Pakistani jewellery exporters. After making 22 carat gold jewellery for value-addition, exporters ship jewellery to buyers through self-consignment and cargo.

All-Sindh Sarafa Jewellers Association’s President Haji Haroon Chand said that people in Pakistan are now more interested in investing in real estate owing to soaring property prices.

He claimed that gold in Pakistan is selling at Rs1,800 per tola lower than Dubai.

Published in Dawn, June 26th, 2016