Gold crosses Rs100,000 per tola

Updated 15 Apr 2020

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Advance orders for wedding sets – which were placed prior to Ramazan – are down considerably. — AFP/File
Advance orders for wedding sets – which were placed prior to Ramazan – are down considerably. — AFP/File

KARACHI: Local one tola and 10 gram gold price in the country reached a peak of Rs100,400 and Rs86,076, respectively, on Tuesday.

There was a gain of Rs700 and Rs600 in per tola and 10 gram prices from Monday. The local bullion body continues to issue “prices only for idea” since the shutdown of local markets – including jewellery shops – due to the Covid-19 lockdown.

The All Sindh Saraf Jewllers Association (ASSJA) quoted world gold price of $1,721, up $31 per ounce from Monday.

President ASSJA, Haroon Rashid Chand said the association is updating local rates based on world markets where bullion is being traded.

“Weekly and monthly verbal dealings are being made among bullion traders all over the country” he claimed.

“The association is also trying to create price awareness among the consumers so that they can are cautious during gold dealings,” Chand said.

The federal government has extended partial lockdown till April 30. The move has affected trade activities in all markets, including jewellery. Currently large wedding functions are banned and as a result most weddings are taking place at home. Since the pandemic shows no sign of slowing down, wedding hall bookings will remain suspended during Ramazan which begins from April 24.

Jewellers are certainly feeling the pinch of trade loss. Advance orders for wedding sets – which were placed prior to Ramazan – are down considerably.

Chairman All Pakistan Jewellers Association (APJA), Mohammad Arshad said online gold trade is thriving in world markets as the yellow metal is considered a safe haven in trouble times.

“However, in Pakistan, online gold trade is hardly one or two per cent. Trading is done in less than five grams instead of one tola or up,” Arshad said.

He added that there is a possibility that some small gold processing factory owners are dealing in online trade due to their social circles.

Published in Dawn, April 15th, 2020