KARACHI: Continuous recovery in rupee’s strength has brought down the domestic price of one-tola and 10-gram gold by Rs2,850 and Rs2,443 respectively in the last two days.
On Saturday, one-tola gold price fell by Rs1,650 to reach Rs56,350 while 10-gram price dipped Rs1,414 to settle at Rs48,311 despite $4 rise in international yellow metal rate to $1,224 per ounce.
On Friday, one-tola and 10-gram rate plunged by Rs1,200 and Rs1,029 to Rs58,000 and Rs49,725 while world gold price fell by $8 to $1,220.
By taking July 21 (last Saturday) prices of one-tola and 10-gram gold rates at Rs60,050 and Rs51,483, gold price had shed Rs3,750 per tola and Rs3,172 per 10 grams respectively in the last one week owing to surging rupee value against the dollar and decline in yellow metal price by nine dollars per ounce to $1,224 from $1,233.
On Jan 1, world gold price was $1,304 per ounce as compared to current rate of $1,224 per ounce, down $80 per ounce but the local rates at that time were Rs 56,200 and Rs 48,171 per tola and per 10 grams. As a result of steep fall in world price from January till to date coupled with rupee appreciation — the domestic rates should have come down more drastically. All Sindh Sarafa Association (ASSA) President Haji Haroon Rashid Chand said local bullion prices go up and down on rupee-dollar exchange rates movement and on world prices.
He said rupee had gained Rs7 against the dollar in the open market from Thursday to Saturday which was passed on to the consumers despite rise and fall in world gold price.
He claimed that jewellery sales had not picked up despite price drop in gold and ongoing marriage season as many people still cannot afford due to their squeezing purchasing power. When asked why gold imports are rising, he said gold is being imported by the exporters of gems and jewellery. According to data of Pakistan Bureau of Statistics (PBS), the country’s gold import rose to 509 kg in FY18 costing $20.7 million versus 440kg worth $16.6m in FY17, up by 16pc in quantity and 24pc in value.
Jewellery export inched up by 1.3pc to $5.9m in FY18 from $5.8m in FY17.