Gold prices soar by Rs11,600 per tola in 2018

KARACHI: Despite a fall of $19 per ounce in international market, local gold consumers witnessed a sharp jump of Rs11,600 and Rs9,957 in one tola and 10 grams prices during 2018.

The prices of one tola and 10 grams were Rs56,200 and Rs48,171 on December 30, 2017, based on world price of $1,303 per ounce. A year later, these are being quoted at Rs67,000 and Rs58,128 while the world price is $1,284 per ounce.

Talking to Dawn, All Sindh Sarafa Jewellers Association (ASSJA) President Haji Haroon Rasheed Chand attributed fluctuating trend in local gold rates to price movement in world market and rupee-dollar parity.

Rupee had lost its strength by 24-25 per cent from December 2017 to December 2018, thus pushing up cost of all imported commodities.

Interestingly, on many occasions in the past, ASSJA lowered local gold price amid increase in world prices.

Mr Chand said this year gold jewellery sales have remained subdued amid the ongoing shadi season owing to decreasing buying power of consumers on account of soaring food and utility bills.

Regarding yellow metal as an investment, he said people and investors with surplus cash are putting up their money in both gold and the US dollar.