Gold rates move up

Jewellery dealers witness low sales due to surging gold prices.
Jewellery dealers witness low sales due to surging gold prices.

KARACHI: Local gold prices maintained an upward trajectory on Friday, soaring to a new peak of Rs109,650 per tola and Rs94,007 per 10-grams.

The rates were up by Rs300 per tola and Rs257 per 10-grams compared to Thursday’s prices.

All Sindh Saraf Jewellers Association President Haji Haroon Rasheed Chand said local rates were fixed at slightly higher side due to the rupee-dollar fluctuation. “Gold jewellery sales have been very slow since March when wedding halls and other public venues were closed down to contain the spread of coronavirus,” Chand said.

Country’s gold import during May and June 2,020 remained “nil” while FY20 also ended with 18 and 12 per cent drop in quantity and value, respectively.

Total gold import during FY20 stood at 275 kilogrammes valuing $11.6 million as compared to 335kg worth $13.2m.

Jewellery exports in FY20 also plunged by 34pc to $3.2m, according to figures shared by the Pakistan Bureau of Statistics (PBS).

Meanwhile, gold price jumped in international markets on Friday — poised for its sixth consecutive weekly gain — as a record-breaking rise in coronavirus infections in the United States fueled uncertainly about an economic recovery. A weaker greenback also added support, according to a report by Reuters.

“Spot gold rose 0.7 per cent to $1,809.86 per ounce at 11:25 am EDT (1525 GMT) and has gained 0.6pc so far this week. US gold futures were up 0.7pc at $1,811.90 per ounce,” the report added.

“Negative real interest rates, ballooning central bank balance sheets, weaker US dollar and still-rising Covid-19 cases are enhancing the safe-haven appeal of the yellow metal,” the report quoted ANZ commodity strategist Soni Kumari as saying.

“Now, escalating tension between the US and China is another tailwind for the market.”

A sharp rise in stimulus packages globally to shield economies from the fallout of the coronavirus pandemic has driven safe-haven gold prices 19.3pc higher so far this year.

Elsewhere, palladium rose 1.75 pc to $2,031.37 per ounce, while platinum rose 1.3pc to $834.91 per ounce.

Silver rose 0.8pc to $19.32 per ounce and was headed for a sixth straight weekly rise.

Published in Dawn, July 18th, 2020

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