Gold hits an all-time high

Published December 18, 2022
Women browse jewellery at a shop in Lahore. Gold dealers are complaining sales are depressed despite marriage season being at its peak, as unprecedented inflation has squeezed the purchasing power of households.—AFP
Women browse jewellery at a shop in Lahore. Gold dealers are complaining sales are depressed despite marriage season being at its peak, as unprecedented inflation has squeezed the purchasing power of households.—AFP

KARACHI: Domestic gold prices continued their record-breaking spree as one-tola and 10-gram rates on Saturday hit a fresh peak of Rs172,200 and Rs148,062 after adding Rs800 and Rs686 respectively.

All Sindh Saraf Jewellers Association (ASSJA) quoted a jump of $11 to $1,793 per ounce on the world markets.

Gold prices have risen by Rs46,000 per tola and Rs39,866 per 10 grams since Jan 1 when rates stood at Rs126,200 and Rs 108,196, respectively, even when the international price of the yellow metal was hovering around $1,830 an ounce.

Also, the US dollar changed hands at Rs178 in the interbank on Jan 1 against Rs225 now, showing a 26pc devaluation of the local currency since then.

A jewellery maker Mohammad Arshad said the rupee devaluation against the dollar has offset the impact of falling world gold prices since January to date.

He said the rush for gold bars, which gained momentum amid reports of Pakistan’s possible default, has eased in the last few days due to a meteoric price hike.

However, sales of wedding sets have still been subdued as many families — badly hit by unprecedented inflation and highest-ever utility bills — are either finding it hard to buy gold or compromise on purchasing low-weight jewelley sets.

Published in Dawn, December 18th, 2022

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