KARACHI: Amid a drop of $79 per ounce in the world market in 2021, domestic price of gold soared by Rs10,031 per 10-grams and Rs11,700 per tola between Jan 1 to Dec 31 in the outgoing year.

Gold price on the last day of 2021 was Rs108,025 per 10-grams and Rs126,000 per tola as compared to Rs97,994 and Rs114,300 a year ago. In the same period, international gold rates went down to $1,820 versus $1,899 per ounce on Jan 1, 2021.

Chairman of All Pakistan Jewellers Manufacturers Association (APJMA) Mohammad Arshad said depreciating rupee against the dollar had offset the impact of falling world gold price in the last one year.

One dollar was trading at Rs159 on Jan 1, 2021 as compared to Rs176.51 on Dec 31, 2021 in the inter-bank market, making imports of raw materials and finished items costlier.

He recalled that 10-gram and one tola gold rates reached an all-time high of Rs113,854 and Rs132,800, respectively, on October 26, 2021 while the international market price was at $1,803 per ounce. Back then, one dollar was available at Rs175 in the inter-bank market.

As per sales trend in 2021, he said dwindling purchasing power and rising cost of living and utility bills had hit the sales of jewellery sets, forcing many people to bring their old jewellery and have these melted and crafted into new sets with low weight.

He said buyers used to purchase gold chains of 10-grams three years ago but are now opting for chains which weigh between two to four grams.

Published in Dawn, January 1st, 2022