Islamabad, 28 January 2023 (GNP): Following the rupee’s freefall against the US dollar on Friday, gold prices exceeded Rs200,000 per tola (11.66 grams) for the first time in Pakistani history. However, because real buyers have left the market and gamblers have entered, the increase in the price of gold has upset jewelers.
According to Haji Haroon Chand Rashid, the head of the local gold pricing body, speculators are minting money under the guise of investment. They succeed financially and then disappear, confusing sincere investors.
The price of gold increased by Rs7,000 per tola to Rs22,000 in the country. The most recent increase in price comes after the rupee experienced a fall of 2.73%, or Rps 7.17, to an all-time low of Rps 262.60 against the US dollar in the interbank market on Friday.
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Haji Haroon Chand Rashid stated: “The rupee-dollar exchange rate impacts bullion pricing in Pakistan, as gold remains a global commodity. The gold available within the country is in circulation in the market these days. The price-hike is unjustified and I will record my protest tomorrow (Saturday). Despite being peak wedding season, there are hardly any jewellery buyers visiting the outlets. Currently, only 10-tola TT bars are in demand. Instead of crafting new designs to cater to bridal homes, goldsmiths are now only spending time melting old jewellery to convert them into gold bars as demanded by investors.”
He further added: “From the time that the US dollars started disappearing from the open market, investors began turning towards gold bars as safe havens for their funds. However, now, gamblers are playing the gold markets, and they are the reason behind this consistent hike.”