KARACHI: Local per tola gold price on Monday hit Rs50,000 for the second time in the current year while the 10 grams gold price stood at Rs 42,857 based on world gold price of $1,299 per ounce.

On Saturday, the 10 grams and per tola prices were Rs42,557 and Rs49,650 respectively while world gold price was $1,297 per ounce.

Earlier in March, when world gold price was $1,267 per ounce, the per tola and per 10 grams prices were recorded at Rs50,000 and Rs42,857.

When asked about the domestic rates prevailing in March and May despite a change in world gold price, a bullion dealer said this was due to the rupee-dollar parity which was also considered while announcing domestic gold prices.

He said 10 grams and one tola gold prices in the first week of January were Rs37,971 and Rs44,300 respectively when the world gold price was $1,062 per ounce.

From January to date, the 10 grams and one tola price has risen by Rs4,886 and Rs5,700 respectively.

In 2015, 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 10grams and Rs49,450 per tola.

According to KASB Commodities, gold prices rallied sharply on Friday to $1,296/oz, the highest level in 15-months.

The move surprised participants as the dollar fell to an eight-month low. Support for the yellow metal also came in the form of weaker economic data and stock markets around the world. Japan, in particular, has investors nervous as its stock market fell another three per cent in early trading on Monday.

All Sindh Sarafa Jewellers Association’s President Haji Haroon Chand said gold rallied above $1,300 per ounce in early session but later settled below $1,300. He said domestic prices were calculated on $1,299 per ounce.

“In Pakistan, investors are also taking interest in yellow metal since the price has been climbing up,” he said.

He claimed that gold price in Karachi was lower by Rs1,300 per tola as compared to rates in Dubai.

He further said that demand for gold remained normal due to the wedding season.

Pakistan’s gold imports in July-March 2015-16 stood at 530kg worth $19.5 million as compared to 393kg ($16m) in the same period of 2014-15. Jewellery exports during the period were $5.2m as compared to $4.95m a year ago.

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

Published in Dawn, May 3rd , 2016