KARACHI: Amid uncertain political and economic environment, domestic gold prices continued a record-setting spree on Wednesday, tossing the 10-gram and one-tola rates to an all-time high of Rs236,197 and Rs275,500, respectively, up by Rs2,144 and Rs2,500, from Tuesday’s rates.

The All Pakistan Gem and Jewellery Association (APGJA) attributed the surge in local prices to a $25 per ounce jump in the world markets to $2,653.

All Karachi Jewellers and Manufacturers Association Chairman Mohammad Haseen Qureishi said the rising prices drive away the buyers and “we are running our shops with only 30-35 per cent footfall of consumers”.

He said that the buyers of 10-tola jewellery sets have now settled toward two to three tola, and others rely on half a tola jewellery items due to their shrinking buying power.

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Samiullah Tariq, head of research and development at Pak Kuwait Investment Company Ltd, said the people in Pakistan were preferring to invest in gold rather than in real estate and US dollars due to an uncertain economic outlook.

APGJA Chairman Haroon Rasheed Chand said investors worldwide have moved towards the yellow metal after interest rate cut by the Federal Reserves and Chinese central bank, followed by uncertain political situation arising from Israeli attacks on Gaza and Lebanon and reports of economic crisis in many countries.

Published in Dawn, September 26th, 2024