KARACHI: The one-tola gold price reached an all-time high on Saturday to Rs260,200, breaking the previous record of Rs257,700 on Aug 13, showing a jump of Rs2,500 per tola from Friday.
Similarly, the 10-gram rate swelled to a new peak of Rs223,080 with a rise of Rs2,144, smashing the previous high of Rs220,936.
The main reason behind the push in local rates was a $46 per ounce rise in world gold rates to $2,507 compared to Friday, according to the All Pakistan Gem and Jewellers Association (APGJA).
According to Tresmark, gold has had an extended record run as broad market volatility lures buyers eying $2,600 per ounce. Factors for this surge are escalating geopolitical risks and the interest rate outlook.
On Jan 1, the 10-gram and one-tola rates were Rs188,357 and Rs219,700, respecetively, when the international gold rate was $2,082 per ounce. As a result, the price hike in 10 grams is Rs 34,723 and Rs 40,500 in one tola in the above period. All Karachi Jewellers and Manufacturers Association (AKJMA) President Mohammad Haseen Qureishi said the local rates have surged due to an increase in world bullion rates despite rupee-dollar stability for the last few months.
He said local retail gold outlets have been wearing a deserted look since the upward rally in the rates as people are more occupied with managing the soaring cost of living. “Power bills sent by K-Electric have played havoc with household budgets.
“Our sales are down by 65 per cent due to lack of advance orders for jewellery making and thin footfall of consumers at shops despite ongoing marriage season after Ashura,” he said.
Giving a dismal picture of society, he said: “Several women have been coming up for the last few months to sell their small jewellery like rings, tops, necklaces and chains of low weight just to clear their K-Electric bills.”
He recalled before the sudden rise in power rates, two or three persons would come every third or fourth month to sell their gold ornaments.
“Now our member shops say that at least 10-12 individuals visit shops every month for selling their jewellery,” Haseen said.
“Several women who usually keep gold ornaments for their daughters’ marriage, could not hold back their tears, telling shopkeepers they have been forced to sell jewellery to clear power bill.”
Published in Dawn, August 18th, 2024
