Pakistan News

Gold price hike slows down jewellery sales

Gold price hike slows down jewellery sales

Karachi: Gold prices on Thursday climbed up to Rs52,650 per tola and Rs 45,128 per 10 grams, up by Rs450 per tola and Rs386 per 10gm as compared to the price prevailing on Wednesday.

On September 1, gold price was Rs51,400 per tola and Rs44,057 per 10gm while its international price remained $1,319 per ounce.

From September 1 till 7, gold price saw a jump of Rs1,250 per tola and Rs1,071 per 10gm owing to $24 per ounce rise in world prices.

As per rates announced by All Sindh Sarafa Association (ASSA), world gold price on Thursday rose by $4 per ounce to close at $1,343 per ounce.

Gold prices have been under pressure after North Korea’s missile and hydrogen bomb tests followed by reports of military response by the US.

In the last one month, the price of per tola gold and per 10gm price has risen by Rs2,150 and Rs1,840 respectively, while global gold price rose by $86 per ounce.

Consumers are bearing the brunt of rising gold prices, especially on purchase of jewellery during the ongoing wedding season in Pakistan, currently at its peak following Eidul Azha.

However, ASSA’s Chairman Haji Haroon Rasheed Chand claimed that jewellery sales have been slow despite the wedding season due to low purchasing power of consumers, and they are instead bringing their old jewellery sets for making new ones.

He said “the price of gold in Pakistan is Rs1,600 per tola lower than the price in Dubai.”

Domestic prices are dependent on world prices and local prices would only slide in case the international prices lose grounds, Chand said.

Gold import had increased to 55kg ($2.1million) in July as compared to 35kg ($1.26m) in July 2016. According to Pakistan Bureau of Statistics (PBS), gold imports plunged to 440kg ($16.6mn) in 2016-17 from 659kg ($24.4m) in 2015-16.

Published in Dawn, September 8th, 2017

Similar News
Recent News
Back to top