KARACHI: Domestic gold price on Friday soared to an all-time high of Rs84,100 per tola and Rs72,085 per 10 grams, up by Rs700 and Rs600 over Thursday.

All Sindh Saraf Jewellers Association (ASSA) attributed local price hike to $16 per ounce rise in world gold rates to $1,438.

Keeping in view yellow metal price of Rs67,800 per tola and Rs58,128 per 10 grams based on world bullion rate of $1,283 per ounce prevailing on January 1, 2019, local rates have swelled by Rs16,300 per tola and Rs13,957 per 10 grams. International price rose by $155 per ounce from January 1 to July 19, 2019.

Chairman All Pakistan Jewellers Association, Mohammad Arshad said soaring gold rates continue to depress jewellery sales further even though wedding season is going on. Arshad said only well-to-do buyers are purchasing jewellery while many people bring old jewellery and have it exchanged or made into new sets.

“Gold prices have hit buyers hard. Those who used to give small gold jewellery set and pendants as gifts on wedding and engagement occasions are no longer following this tradition,” he said. Giving an example, he said a three gram ring used to cost Rs12,000-13,000 a year and half ago as compared to current rate of Rs28,000 while one gram pendant now costs Rs7,500 as compared to Rs4,500.

According to Pakistan Bureau of Statistics (PBS) data, gold imports in FY19 plunged to 332kgs ($13 million) as against 512kgs ($20.7m) in FY18. Jewellery exports fell by 17pc to $4.9m in FY19 from $5.9m in FY18.

According to BIPL Research, gold on Friday surpassed the key $1,450 level for the first time since May 2013, after comments from a top Federal Reserve official bolstered expectation of an interest rate cut, while fresh tensions in the Middle East further supported bullion.

Published in Dawn, July 20th, 2019