KARACHI: In contrast to the global trend, local bullion rates rose to Rs62,000 per tola — higher by Rs1,700 — on account of the sharp rupee slide against the dollar.

With an increase of Rs1,457, the 10 gram gold price was quoted at Rs53,155. According to rates issued by All Sindh Sarafa Association (ASSA), world gold price fell by seven dollars to $1,187 per ounce.

On Oct 8, world gold price fell by $10 per ounce to $1,194 while the association issued one tola and 10 gram rates at Rs60,300 and Rs51,698, showing jumps of Rs200 and Rs171, respectively.

The association’s president Haji Haroon Rashed Chand recalled that some 5.5 years back, one tola domestic gold rate was Rs63,500 based on $1,600 per ounce global price while one dollar was less than Rs100.

“Now Dubai and Karachi rates for one tola gold are the same,” he claimed, adding that sales of jewellery sets in the market are normal during the wedding season.

Domestic gold prices move both on rupee-dollar parity as well as changes in the world bullion rates.

For instance, on June 15, one tola and 10 gram gold prices were fixed at Rs60,000 and Rs51,440, respectively as against world gold price of $1,300 per ounce.

Whereas on July 21, world gold price stood at $1,233 per ounce versus local one tola and 10 gram rates of Rs60,050 and Rs51,483, respectively.

Published in Dawn, October 10th, 2018