KARACHI: The one-tola and 10-gram gold rates scaled new peak of Rs166,400 and Rs142,661, recording a rise of Rs2,250 and Rs1,923, respectively.

Since the start of this year, the price of one tola and 10-gram of gold has risen by Rs40,200 and Rs34,465, respectively, despite a drop of $63 per ounce in world markets during the period. One dollar in the interbank is trading at Rs224.37 as compared to Rs177 on Jan 1.

All Pakistan Jewellers Manufacturers Association President Mohammad Arshad said it seems that the current rally in bullion rates was triggered by the huge presence of local investors who were pulling out their money from banks to lift the 10-tola yellow metal bars fearing economic uncertainty amid possible default reports.

“Huge gold demand has created a shortage of 10-tola bars. Gold traders are booking the bars and giving delivery time of two days to the investors,” he claimed, adding that the jewellery sales, however, remained depressed demand due to high prices despite the ongoing marriage season.

In the international market, gold prices edged higher on Thursday as the dollar eased, while investors positioned themselves ahead of key U.S. inflation data and the Federal Reserve’s policy meeting due next week.

Spot gold was up 0.2pc at $1,789.08 per ounce, as of 1723 GMT, after rising more than 1pc on Wednesday, according to Reuters. US gold futures rose 0.2pc to $1,800.70.

Spot silver added 1.5pc to $23.07 per ounce, platinum rose 0.2pc to $1,004.90 and palladium climbed 4.2pc to $1,922.51.

Published in Dawn, December 9th, 2022