KARACHI, Dec 8: Local bullion rates have touched the new peak of Rs7,715 per 10 grams on Monday as a result of rising price trend of gold which peaked to $409 per ounce in international markets.
The 10 tola bar of gold now costs Rs90,000-91,000. In January this year, it was available at Rs78,000 and three years back, it was selling at Rs58,000.
In case the persistent rising price trend in world gold market continues — the all time high rate record of gold in the domestic market of the 1970s will break.
“Gold has reached the record high in country’s history in 1970s, touching to over Rs8,000 per 10 grams when world markets had soared to $800 per ounce,” former chairman of All Pakistan Gem Merchants and Jewellers Association (APGMJA), Raeesuddin Shaikh recalled. At that time a US dollar was exchanged for Rs10.
Local gold rates had hit a peak of Rs6,700 per 10 grams in January this year, outshining the 2002’s highest yellow metal rate of Rs6,635 per 10 grams. From January till today, gold rates surged by Rs1,015 per 10 grams.
Local gold dealers are forecasting further rise up to $410 per ounce during this week in world markets in view of rising price trend and losing strength of the dollar against the euro.
Raeesuddin said that gold imports have already been suspended for many months after becoming unfeasible. Only those dealers are busy in importing gold who are engaged in export business.
Consumers, looking to provide gold jewellery sets on their daughters’ wedding as a financial security, are now in quandary as the upward movement in the gold rates have made a sizable difference in prices.
“Increase in gold prices in the last six months have made the jewellery costlier by 30 per cent,” the former APGMJA chairman said.
Even in the peak season of marriages after Ramazan, the sale of jewellery is currently below normal routine, he said adding that the flare up in prices have definitely annoyed people.
He said many consumers, ignorant about day-to-day price change, now appear confused whether to buy gold jewellery at this moment or wait for the price stabilization.
Perturbed by uncertain fluctuation in gold rates, many consumers, desirous for jewellery sets, have already made purchases ahead of peak season in order to avoid any shockwaves due to skyrocketing prices,” he added.
As far as investment in bullion is concerned, he said current situation in gold rates is actually uncertain and people usually avoid to invest. However, for long term purposes, people who had bought gold five years back, are now the luckiest ones as yellow bar rates have almost doubled.
In price hike trends — people also bring their old fashioned jewellery to the jewellers for selling purpose.
For short term, the gold might not pay as per expectations, but for long term, it definitely yield good returns.
