KARACHI: The one tola and 10-gram domestic gold prices on Monday swelled by Rs2,000 and Rs1,715 to Rs97,000 and Rs83,162, respectively, owing to an increase of $43 per ounce in world gold price to $1,762 per ounce.

Gold rose on Monday to its highest since October 2012 as worries about souring US-China relations and bleak US economic data underpinned the safe-haven metal, BIPL Securities said. Spot gold was up 0.9 per cent at $1,756.79 per ounce, after rising to its highest since October 12, 2012 at $1,759.98. US gold futures gained 0.5pc to $1,765.70.

Talking to Dawn, gold dealers said that since the reopening of markets from May 11, people have been coming in to sell gold bars and ornaments in a bid to meeting their daily expenses.

The coronavirus lockdown, now in its second month, has severely affected industrial production resulting in job losses to thousands of daily wagers and outsource employees. Many employees working in private industries and offices are now facing pay cuts.

“The market has more sellers than buyers. People are coming to gold shops with old rings, chains and lockets, looking to sell these,” said President All Sindh Sarafa Jewellers Association, Haji Haroon Rasheed Chand.

He opined that gold sales would depend on the resumption of marriage ceremonies after Eidul Fitr.

Chairman All Pakistan Jewellers Association, Mohammad Arshad said a number of people are also coming to sell gold for clearing their annual zakat.

Many people are making inquiries for zakat payments based on current rate and weight of gold they hold, he added.

Published in Dawn, May 19th, 2020