Monitoring Desk
ISLAMABAD/KARACHI: As the rupee depreciated by 13.7% against the US dollar in the last two days, the one-tola gold rate for the first time crossed the Rs200,000 mark despite a $6 drop on world markets to $1,936 per ounce on Friday.
According to the All Sindh Saraf Jewellers Association, the one-tola rate surged by Rs7,000 to Rs202,500 while the 10-gram saw a rise of Rs6,000 to Rs173,610.
All Pakistan Jewellers Manufacturers Association chairman Mohammad Arshad said that there was no panic buying, which had been rampant in the last few months, and neither investors were selling their bars to gain any profit.
Gold for cash-starved consumers
The meteoric rise in precious metal rates has made jewelry sets out of reach of many people, he said, adding that a 0.4 gram of gold nose pin carries a price of Rs7,000-8,000, which is undoubtedly unaffordable for many cash-starved consumers.
When asked at what dollar rate the Pakistan gold prices are being fixed, he said if the one-dollar rate is taken at Rs275, then the cost of one-tola comes to slightly less than Rs200,000.
As all imported raw materials and finished items are linked with the interbank, gold is the exclusive exception as its rates have always been calculated on the open market greenback rate.
Samiullah Tariq of Pak Kuwait Investment said that investors were more active in gold buying for the previous two to three months due to better returns. The dollar comes in the second spot.
Real estate remained investors’ first preference in fetching handsome returns. Significant gains in the dollar lured investors in the previous two to three years.
Tariq said that gold is easy to store. The person spends millions of rupees to get gold bars in limited volume. A shining metal has also long been trusted as a haven. Transactions in gold are also accessible as compared to dollars.
ASSJA President Haji Haroon Rasheed Chand said speculation has been thriving in the gold market but claimed that “investors are on the sidelines as they look more interested in dollars.”
He said jewelry sales have been negligible as soaring rates do not allow many families to think about gold buying.
According to the Pakistan Bureau of Statistics data, gold import rose to 236kg ($14.4m) in IHFY23 from 168kg ($10m) in the same period last fiscal year, up by 40pc in quantity and 44pc in value. Jewelry exports in IHFY23 slightly fell to $4.8m from $4.9m in the same period last year.
