Gold prices in Pakistan defy global trend, spark manipulation fears

KARACHI: Gold prices in the local market experienced an unexpected and sharp surge of Rs5,600/tola on Tuesday, prompting market sources to question whether manipulative forces were at play.

The All Sindh Saraf Jewellers Association reported that gold rates had soared to Rs215,000/tola, setting off alarm bells in the financial sector.

Similarly, the price of 10 grams of gold also witnessed a substantial increase, rising byRs5,058 to reach Rs184,585.

This local price spike occurred in stark contrast to the international gold market, where prices had decreased by $15, settling at $1,911/ounce.

In contrast to the gold market’s peculiar behaviour, silver rates experienced a modest increase, with prices rising by Rs50 to close at Rs2,550/tola.

The cost of 10 grams of silver also increased by Rs42.87, reaching Rs2,186.21. This sudden and substantial rise in gold prices in the local market left industry insiders and observers bewildered, given the prevailing international market trends and the Pakistani rupee’s appreciation.

One goldsmith, who chose to remain anonymous, suggested that this price hike could be attributed to manipulation by certain market participants. He likened the situation to the money market, where speculators and manipulators could exert significant influence on rates.

In this case, he implied that similar forces may have conspired to drive up gold prices, despite global market indicators and the Pakistani rupee’s relative stability.

This suspicion of manipulation raises concerns about the integrity and transparency of the gold market. Market participants are left to grapple with questions about the factors that led to such a significant and unexplained price increase.

While gold prices often exhibit volatility, the circumstances surrounding this particular surge are causing some to scrutinise the market for signs of foul play. The precious metal’s value is influenced by a complex interplay of economic, geopolitical, and market factors, making it vulnerable to various forms of manipulation.

As market regulators and industry experts delve into this unusual price movement, many are hopeful that transparency and accountability will be upheld in the gold market. Investors and consumers alike are keenly observing the situation, hoping for a clearer understanding of what led to this unexpected and significant price hike.