KARACHI: The price of one tola of gold reached closer to Rs300,000 on the back of all-time high international prices due to the looming uncertainty over the US trade war with China, Mexico, and Canada and its impact on various countries.

Data released by the All Pakistan Sarafa Gem and Jewellers Association on Wednesday stated that the 10-gramme and one-tola rates (24kt) climbed to new all-time high peaks of Rs256,859 and Rs 299,600, up by Rs4,158 and Rs5,300, respectively, compared to Tuesday’s rates.

International gold prices also swelled to an all-time high of $2,868 per ounce after a jump of $53 per ounce. All Karachi Jewellers and Manufacturers Association President Mohammad Haseen Qureshi said the rising prices were putting the buyers in a quandary whether to instantly buy jewellery or wait for the prices to fall.

He said sales of jewellery sets were also negligible, thus creating problems mainly for small and medium-sized jewellers and workers employed in gold-making units.

“If the gold rally continues unabated, then a time will come that the precious metal trade will remain confined to big investors only,” he feared, referring to empty shops as a result of dwindling sales of jewellery.

Despite stability in the exchange rate in Pakistan, gold prices were hit by the first Ukraine-Russia and Israel-Gaza wars, and the recent trade war started by the US was also putting pressure on gold prices, he added.

Mr Haseen said even upper-income group buyers were facing difficulties in making jewellery sets of 1-2 tola while gold purchases by low middle-class families have also become a difficult task due to inflation. In view of the uncertainty over the fixation of local rates, he said they had been demanding the government to form a regulatory authority comprising gold trade stakeholders and government officials for fixing daily bullion rates.

All Pakistan Jewellers Manufacturers Association President Mohammad Arshad said investors were active in the market by lifting one-gram bars to one-tola bars, while the overall sales of jewellery sets were going down with the rising prices. “Besides investors, some rich buyers, who have cash, are also lifting one-gram gold bars,” he claimed.

Published in Dawn, February 6th, 2025