KARACHI: Despite decrease in world gold prices and stability in exchange rates, local bullion price hit new peak of Rs66,200 and Rs56,756 per tola and per 10 grams on Friday, up by Rs400 and Rs343 respectively.
All Sindh Sarafa Association (ASSA) quoted world gold price at $1,239 per ounce, down by four dollar per ounce than Thursday.
ASSA President Haji Haroon Rasheed Chand said gold prices were up on Friday due to rising dollar against the rupee in the last few days.
On the contrary, the rupee-dollar parity has not shown any wild fluctuation.
The association had also increased gold price by Rs250 per tola and Rs214 per 10 grams on Thursday amid a two dollar plunge in per ounce gold price in global market.
Since the beginning of 2018, world gold price has fallen by $61 per ounce from January to date but in Pakistan the price of one tola gold and 10 gram has swelled by Rs10,029 and Rs8,585 respectively. World gold price in January was $1,301 per ounce, while one tola and 10 gram rates were Rs56,171 and Rs48,171, respectively.
Rupee has lost its strength against dollar by 27 per cent from January to date as one dollar is now equal to Rs139 in interbank market versus Rs110 in beginning of this year.
An analyst at Top Line Securities said investors do not have much interest in yellow metal in Pakistan. However, due to weak macro conditions, dollar investments have remained more in demand, he added. The ‘marriage season’ is now at its peak in the country and during this period gold demand usually remains high. But gold traders said they had not witnessed any extra demand for gold due to very high prices. Increase in prices of various food items and utility expenses have shrunk consumers’ buying power.
Published in Dawn, December 15th, 2018