Gold hits all-time high

Updated June 14, 2019

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Domestic gold prices on Thursday hit an all-time high of Rs73,200 per tola and Rs62,757 per 10 grams. — AFP/File
Domestic gold prices on Thursday hit an all-time high of Rs73,200 per tola and Rs62,757 per 10 grams. — AFP/File

KARACHI: Despite one dollar per ounce rise in world gold price to $1,337, domestic gold prices on Thursday hit an all time high of Rs73,200 per tola and Rs62,757 per 10 grams, showing a jump of Rs600 and Rs514 respectively than the rates prevailing on Wednesday.

President All Sindh Saraf Jewellers Association (ASSJA) Haji Haroon Rasheed Chand said continuous rupee depreciation against the dollar has also been putting extra pressure in determining domestic gold prices.

He said jewellery sales were hit shrinking buying power of the consumers on account of rising food prices and other utility expenses.

“Gold is now selling under cost in Pakistan by Rs3,000 per tola than Dubai. Few people are taking risk to invest in gold,” he added.

Mohammad Sohail at Top Line Securities said, “Investment in gold is not coming in a big way. National Savings and Bank deposits are more attractive investment options owing to high returns.”

From January 1, 2019 till to date, one tola and 10 gram yellow metal prices have surged by Rs5,400 and Rs4,629 respectively, while world gold price in the same period swelled by $54 per ounce.

According to BIPL Research, gold prices advanced on Thursday as demand for the safe-haven metal rose on expectations of an interest rate cut by the US Federal Reserve following soft inflation data, and on escalating trade tensions between the world’s top two economies.

Spot gold was up 0.3 per cent at $1,336.45 per ounce and US gold futures were also 0.3pc higher, at $1,340.10 an ounce.

Published in Dawn, June 14th, 2019