Gold gets cheaper as rupee appreciates

Published October 28, 2018
Local markets await seasonal effect to kick in as gold prices decline despite rising trend on international markets.
Local markets await seasonal effect to kick in as gold prices decline despite rising trend on international markets.

KARACHI: Amid rising trend in world gold price followed by rupee appreciation of 1.5 per cent against the dollar in the current week, local gold price fell by Rs1,800 per tola and Rs1,543 per 10 grams respectively.

According to rates issued by All Sindh Sarafa Association (ASSA), one tola and 10gm gold prices were Rs 61,500 and Rs 52,726 on Monday as compared to Rs 59,700 and Rs 51,183 on Saturday.

In contrast, world yellow metal price rose by $11 dollars per ounce to settle at $1,234 per ounce in the international market during the current week.

ASSA determines local prices based on rupee-dollar parity and international rates. As per market practice, local prices of any commodity usually go up on rupee devaluation against the dollar and rising prices of commodities in world market.

Giving reason of keeping low price, ASSA President Haji Haroon Rashed Chand said the gold price in Karachi is cheaper by Rs 2,000 per tola than Dubai. Besides, gold demand has yet to pick up despite ongoing marriage season and the market is witnessing decreased number of buyers and sellers, he added.

According to data of Pakistan Bureau of Statistics (PBS), import of gold in 1QFY19 plunged to 114 kgs ($4.62 million) versus 143kg ($5.65m) in the same period last fiscal.

Jewellery exports in 1QFY19 rose by 32pc to $1.24m from $0.94m in corresponding period of last fiscal.

Published in Dawn, October 28th, 2018

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