KARACHI: On Thursday, the local gold market experienced a price shock as the domestic rate for one tola (24 kt) gold surged to a new all-time high of Rs261,800, marking an increase of Rs800 from Wednesday. This hike occurred despite a decrease in the global gold price, which fell by $8 per ounce to $2,504.
The All Sindh Sarraf and Jewellers Association (ASSJA) also raised the price of 10 grams (24 kt) of gold by Rs686, bringing it to Rs222,451.
The association’s recent price adjustments come amid stable global gold rates and a relatively stable rupee-dollar parity. This trend follows a pattern where local rates are adjusted based on currency fluctuations, even when international prices remain steady.
Mohammad Arshad, Chairman of the All Pakistan Jewellers Manufacturers Association, noted that soaring gold prices have severely impacted demand for jewelry, with sales dropping to just 15-20 percent. Consumers are increasingly unable to afford traditional gold gifts for weddings and are opting for cash gifts instead. The high prices have also led to a slowdown in the sale of gold bangles and other jewelry items.
Arshad called on the government to intervene by providing incentives for jewelry exports, which could help boost the industry and support local exporters amidst the challenging market conditions influenced by geopolitical tensions between Iran and Israel.
