KARACHI: The per 10-gram and one-tola gold prices on Saturday hit a five and half years peak at Rs49,628 and Rs57,900 after a jump of Rs257 and Rs300, respectively.

The All Sindh Sarafa Association (ASSA) cited the $8 per ounce rise to $1,339 per ounce in the world gold price for pushing up the local bullion rates.

Since the start of the year, the domestic 10-gram and one-tola gold prices have swelled by Rs1,457 and Rs1,700, respectively, followed by $35 an ounce rise in the world rates.

On Jan 1, ASSA quoted rates of Rs48,171 per 10-gram and Rs56,200 per tola while world bullion rate was $1,304 per ounce.

Local gold prices had been under pressure since June 2017 following persistent jump in world bullion rates as well as rupee’s devaluation against the US dollar. From June till to date, the local 10-gram and one tola rate had seen sharp rise of Rs6,771 and Rs7,900 respectively, while international gold price saw $73 per ounce hike in the above period.

Local rates prevailing on June 1, 2017 were Rs50,000 and Rs42,857 respectively, while international price was $1,266 per ounce.

The upward trajectory poses a burden to the buyers looking to purchase the commodity in lieu of the ongoing wedding season.

ASSA Chairman Haji Haroon Rasheed Chand claimed the current rate to be the highest in the last five and half year, recalling that in first week of April 2012, the record high rates of 10g and one-tola gold were Rs49,371 and Rs57,600 respectively, based on world gold price of $1,616 per ounce.

While the current international rate is lower as compared to the 2012 one, the dollar was then cheaper in terms of the rupee thus accounting for the lower local price, he added.

Published in Dawn, January 14th, 2018