KARACHI: One tola and 10-gram local gold prices swelled by Rs3,300 and Rs2,829 on Thursday to Rs129,100 and Rs110,682, respectively, on the back of rising world gold price by $38 per ounce to $1,863 per ounce.

Karachi Saraf and Jewellers Group President Haji Haroon Rasheed Chand attributed increasing domestic price to falling value of the rupee against the dollar and soaring world bullion prices.

He said rising gold prices had kept away buyers from the jewellery market despite the ongoing wedding season. “Low purchasing power of people on account of rising food prices had made buyers cautious towards gold purchasing,” Mr Chand. However, he added, local investors were very much active in investing in gold as well as in the dollar.

All Pakistan Jewellers Manuf­acturers Association Chairman Mohammad Arshad said gold prices had shown an erratic trend as they peaked to Rs132,000 per tola and Rs113,168 per 10-grams on October 26 when international gold price went up by just two dollars only to $1,804 per ounce.

From October 29 to November 3, one tola and 10-gram gold price remained lower at Rs117,000-118,000 and Rs100,652-101,680, respectively, based on world gold price which was below $1,800 per ounce while exchange rate was also under control.

Mr Arshad said persistent rupee depreciation against the dollar in the last four days has negatively impacted local gold prices. “Only those buyers are visiting the market who need to sell old gold jewellery and purchase new items in view of the ongoing marriage season,” he added.

Published in Dawn, November 12th, 2021