Gold hits record Rs281,000 per tola

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KARACHI: The 10-gram and one-tola gold rates (24kt) on Saturday conti­n­­­ued to post new records as they surged to Rs241,598 and Rs281,800, registering a jump of Rs772 and Rs900, respectively, over Friday’s rates.

World gold price rose to $2,721 per ounce, up by $9 per ounce from Friday. The All Sindh Saraf and Jewellers Association (ASSJA) said domestic and world prices were at all-time highs.

As the marriage season is at its peak, many consu­mers must be in a quand­ary over massive local pri­ce hikes in bullion rates, thus forcing them to focus on low-weight jewellery sets.

The 10-gram and one-tola gold rates swelled by a whooping Rs53,241 and Rs62,100 from Rs188,357 and Rs219,700, respectively, prevailed on Jan 1.

The international gold rate on Jan 1 was $2,082 compared to the current $2,721 per ounce, reflecting a rise of $639.

ASSJA President Haji Haroon Rasheed Chand said as long as escalating tension in the Middle East persists, gold prices will continue to break new records.

He said investors in the world and Pakistan, who have surplus cash, are lifting gold for safe-haven purposes. “Investors, who were previously procuring dollars, have shifted towards the yellow metal,” he added.

Mr Chand said the market is abuzz with reports the rich are withdrawing cash from their bank accounts to invest in gold as a low return amid a downward trajectory in the interest rates is no longer attractive bait for multiplying their money.

He said that sales of jewellery sets in the ongoing marriage season are subdued due to steep rises in prices as many people are hit by squeezing purchasing power amid rising costs of living triggered by high power and gas bills.

Published in Dawn, October 20th, 2024