KARACHI: Domestic gold prices jumped by Rs1,950 per tola and Rs1,672 per 10 grams this week, tracking an uptrend in the world market.

The metal’s prices, which had been under pressure since the start of this month, hit this year’s record high on Friday to reach Rs48,700 per tola and Rs41,742 per 10g.

Prices in the international market rose by $64 per ounce last week as investors rushed to safe havens because equity markets in various countries dropped once again on rising concerns about the health of European banks.

As a result, investors shifted towards the yellow metal which pushed up its demand. International gold price increased to $1,238 per ounce from $1,174 a week ago.

On Saturday, the 10g and per-tola rates slightly crawled down to Rs41,657 and Rs48,600 in the domestic market, but were still higher than Rs39,985 and Rs46,650 on Feb 6, 2016 based on the then international price of $1,174 per ounce.

In January 2016, 10g and per-tola gold rates were Rs37,971 and Rs44,300, and international price was $1,062 per ounce.

Last year, the highest bullion rates were registered in the third week of January 2015 when the global price was $1,297 per ounce, while domestic prices were Rs42,385 per 10g and Rs49,450 per tola.

All Sindh Sarafa Jewellers Association’s President Haji Haroon Chand said investors in world markets moved towards the yellow metal after losing hopes in the declining trends prevailing in stock markets of various countries followed by instability in dollar rates.

He said local sales of jewellery were normal due to ongoing marriage season while investors were also investing in gold. Gold price in Karachi was lower by Rs1,000 per tola as compared to rates in Dubai, he added.

Pakistan’s gold imports in July-December 2015-16 stood at 371 kilograms worth $14 million compared to 1,164kg ($33m) in the same period of 2014-15. Jewellery exports during the period were $3.66m compared to $3.64m a year ago.

According to the figures of Pakistan Bureau of Statistics, gold imports fell sharply to 578kg ($23m) in 2014-15 from to 4,265kgs ($177m) in 2013-14. Jewellery exports plunged to $7.5m in FY15 from $323m in FY14.

Mr Chand said it was hard to give actual numbers of country’s gold consumption as commercial imports had been negligible for some few years. Only exporters were importing the yellow metal for jewellery exports which had also been depressed for the last six months, he said.

Published in Dawn, February 14th, 2016