KARACHI: All Pakis­tan Gem and Jewellers Association (APGJA) Chairman Haji Haroon Rasheed Chand deviated from his earlier stance by issuing daily gold rates on Thursday even though his body announced a day ago that it was suspending the rate announcements for one week.

The association issued on Thursday the rates for 10-gram and one-tola gold at Rs176,869 and Rs206,300, respectively. The latest rates showed a drop of Rs171 and Rs200 from the prices announced on Wednesday even though the world gold rate saw a rise of $13 per ounce to $1,971.

Mr Chand had announced that his association would start issuing daily prices based on the London bullion rate and the rupee-dollar parity based on the interbank market. The domestic rate would then be applicable all over the country. He said law enforcement agencies would monitor those elements that issued gold rates on their own.

The APGJA chief had called for suspending the announcement of daily gold prices for one week while taking notice of the rates issued by Peshawar and Lahore traders unilaterally at Rs213,000-216,000 per tola (24kt gold). This was despite their mutual understanding about setting the price at Rs206,500 based on the interbank market rates.

However, a gold trader in Karachi said that the disparity in gold rates also continued within the city. Traders in various markets quoted Rs208,000-216,000, thus ignoring the association’s official rate of Rs206,300 per tola (24kt gold).

He said jewellers and even consumers are under stress over multiple bullion rates. “It is time for the government to set up an authority for issuing daily rates in order to ensure price uniformity all over the country,” he added.

The jeweller said no documentation or computerisation had been implemented so far. Jewellers do not give any receipts in case a buyer sells/purchases gold bars or sells old jewellery sets.

Daily gold rates remained suspended from September 13 to October 10. The law enforcement agencies conducted a crackdown during the second week of September. They caught five jewellers for their alleged involvement in speculation and smuggling at a time when negotiations between gold traders, led by Mr Chand, and the law enforcement agencies were going on in the capital for bringing transparency in gold rates. The traders were released on the assurance given by the APGJA chief that his association would help control speculation, promote legal trade, encourage documentation and computerise the business.

Published in Dawn, October 20th, 2023