KARACHI: The increasing price of yellow metal in the world market pushed up the domestic rates of the commodity by Rs2,000 per tola and Rs1,715 per 10 grams on Tuesday.

According to Sindh Sarafa Bazar Association (SSBA), the new rates of per tola gold and per 10 grams are being quoted at Rs58,300 and Rs49,983 respectively.

The Association quoted international gold price of $1,212 per ounce, up seven dollars per ounce compared to Monday.

Up until July, local gold rates were on a downward trajectory due to improving rupee value against dollar in the open and interbank market, while global gold prices were swinging both ways.

However, during August, rupee-dollar parity has remained under control but world rates for gold continue to show an upward trend.

Surprisingly, when gold prices in world market were hovering around $1,223 per ounce on Aug 1, the SSBA had issued local one tola and per 10 gram rates at Rs56,000 and Rs48,011 respectively. And on Aug 11, when the international gold rates were at $1,212 per ounce local rates being quoted at per tola and per 10 gram rates were Rs55,050 and Rs47,196.

Acknowledging the price fluctuations, President SSBA, Haji Haroon Rasheed Chand said the Association mainly fixes the rates after taking into account the rupee-dollar fluctuations and world gold prices.

He said in Pakistan, the gold price is slightly costlier by Rs300 per tola as compared to Dubai. Previously, the trend was reverse and gold was under cost in the country.

Published in Dawn, August 29th, 2018