KARACHI: Domestic 10-gram and one-tola gold rates reached an all-time high of Rs275,205 and Rs321,000 on Thursday, up by Rs2,743 and Rs3,200 on rising world bullion prices day-on-day.
The imposition of a 25 per cent tariff on imported vehicles by US President Donald Trump and rising geo-political tensions further pushed the world gold rate by $31 to $3,052 per ounce.
The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) fixes the daily domestic rates based on interbank rates, which have not shown any significant fluctuation for over a year.
Traders have been in distress due to the ongoing sales lull as prices have exceeded the reach of many people who cannot afford the yellow metal due to the rising cost of living. Traders believe that current trading activity in the local markets is triggered by the investors’ presence, but market analysts offer a different view.
“It’s difficult to invest in gold because of problems/issues related to physical custody, verification, and physical transfer. Easiest are stocks and mutual funds,” said Samiullah Tariq, head of research and development at Pak Kuwait Investment Company Ltd.
Topline Securities Chief Executive Mohammed Sohail said that most investment is still in banks, national savings, real estate and mutual funds.”
All Pakistan Jewellers Manufacturers Association chairman Mohammad Arshad said this is the worst sales recorded in the last 10 days before Eidul Fitr, which usually pick up at this time owing to the start of post-Ramazan peak marriage season.
Due to lacklustre sales, many jewellers are finding it hard to keep their shops open after Iftari, he said, adding that many jewellery shop owners are struggling to pay their inflated power bills amid thin jewellery sales. The same dull situation also exists in the small gold manufacturing units.
“It is hard for many people to buy a three-gram gold chain costing Rs80,000-100,000 as they already struggle to meet their burgeoning daily expenses,” he said.
Shops being sealed
Meanwhile, the Federal Board of Revenue (FBR) team is sealing the jewellers’ shops due to a lack of integration with the point-of-sale (POS). The FBR is not realising that the sales are already highly depressed and traders cannot afford to see their shops sealed due to lack of POS integration, Arshad added.
Gold prices skyrocketed by Rs86,848 per 10 grams and Rs101,300 per tola due to a $970 per ounce rise in world prices. On Jan 1, 2024, the 10-gram and one-tola rates were Rs188,357 and Rs219,700, while the international gold price was $2,082 per ounce.
Published in Dawn, March 28th, 2025
