KARACHI: The All Sindh Saraf Jewellers Association (ASSJA) increased per tola and per 10 grams gold price to a new record peak of Rs81,000 and Rs69,444 on Wednesday despite a decline of $25 per ounce to $1,404 in the international markets. The per tola and per 10 gram rates for gold were up by Rs500 and Rs428 over Tuesday’s rate.

The rupee, after showing some stability in the last few days, lost its strength against the greenback on Wednesday in the open and interbank market, thus putting extra pressure on imported items. The interbank dollar rate swelled to Rs164 on Wednesday as against Rs157 on Tuesday.

ASSJA president Haji Haroon Rasheed Chand said local gold prices were adjusted on the higher side due to rupee depreciation. “I have never seen such volatility in gold rates in my life,” he added.

He said since gold prices had been showing persistent rising trend, the masses – already hit by soaring food prices of essential items and costly utility bills — are unable to afford costly gold jewellery sets for their children’s marriages. These families are compelled to buy imitation and silver jewellery sets because of massive price difference with gold, he added.

According to BIPL Research, gold prices slipped more than one per cent on Wednesday, moving away from a six-year peak hit on Tuesday, as US Federal Reserve officials played down expectations of aggressive rate cuts, while investors locked in profits following a strong rally. Spot gold was down 1.2pc at $1,405.60 per ounce, heading for its first decline in seven sessions.

Published in Dawn, June 27th, 2019