KARACHI: Domestic gold prices hit an all-time high of Rs134,400 per tola and Rs115,226 per 10 grams on Tuesday, up Rs1,400 and Rs1,200 from Monday’s rate despite falling bullion rates on the world markets during the last one month.

According to the daily rates issued by Karachi Saraf and Jewellers Group (KSJG), the international gold rate on Tuesday surged by only three dollars per ounce to $1,863, while one dollar was trading at Rs188.66 in the interbank market.

On April 7, gold prices reached an all-time high of Rs134,300 per tola and Rs115,141 per 10 grams based on the world gold rate of $1,927 per ounce, while one dollar was equal to Rs183.38 in the interbank market.

According to Mohammad Arshad, the chairman of the All Pakistan Jewellers Manufacturers Association (APJMA), despite a $64 per ounce drop in world gold prices from April 7 to date, consumers will face no price relief because the dollar’s persistent rise against the rupee has negated the benefit.

He said that in view of rising local prices, some families are investing in gold in five grams, 10grams and one tola bars. Despite the boom in the marriage season after the holy month, jewellery sales are subdued.

The APJMA chief said a few cash-rich buyers are arriving in the markets to buy on the spot or make advance bookings for jewellery sets for the brides.

KSJG President Haji Haroon Rashid Chand said people are investing in gold and dollars in view of their upward price journey. He claimed that Pakistani gold is now selling under cost by Rs1,000 per tola in Dubai.

Pakistan’s gold imports during July-March 2021–2022 swelled to 253kg valuing $15 million, versus 98kg worth six million dollars.

Figures from the Pakistan Bureau of Statistics revealed a 53 per cent jump in jewellery exports to $10m in the first nine months of the current fiscal year from $6.5m in the same period in FY21.

Published in Dawn, May 11th, 2022