The Gold prices are now at an all-time high and stand at PKR 84,100/tola and PKR 72,085/10 grams. Experts say that this rise in the local market is due to the $16 per ounce hike in the world gold rates. The world gold rate stands at $1,438/ounce at the time of writing.
The gold rates were PKR 67,800/Tola or PKR 58,128/10 grams locally which were based on the world bullion rate of $1,283/ounce, on January 1, 2019. From Jan 1 to July 19, 2019, the gold rates have risen by PKR 16, 300/Tola or PKR 13,957/10 grams in the local market and by $155 in the international market.
According to Morgan Stanley, the increase in the gold rates is due to the trade war that the US has imposed on the whole world, China and the EU in particular. Investors view gold as a safe investment in these times, hence invest massive amounts in gold, and drive the prices up.
Local retailers say that the price hike in gold has led to a sharp decline in purchases. Shopkeepers said that although this is the wedding season, they had not experienced that much interest from the buyers as compared to the previous years.
The imports of gold in the country currently stand at 332 kg as compared to the 512 kg imports of gold in the previous year.