Gold hits record Rs241,100/tola, tracking global rally

KARACHI: Gold prices in Pakistan soared to a record high on Thursday, with the local market rate for one tola of gold climbing by Rs2,200 to reach Rs241,100, surpassing the previous peak of Rs240,000 recorded in May of the previous year, traders said.

The All Sindh Saraf Jewellers Association said that the surge in local prices aligns with the global market, where gold also hit a new high, reaching $2,311 per ounce.Similarly, the price of 10-gram gold rose by Rs1,886 to Rs206,704.

An official of the association claimed that the prices had touched Rs242,700 per tola in the local market in September last year. However, no such record could be fetched, as bullion rates were not issued most of the time in September following a crackdown against manipulators by the law enforcement agencies of the country.

Gold rates increased by $21 to $2,311 per ounce in the international market, which is the all-time high rate in the international market.Silver rates increased by Rs40 to Rs2,650 per tola. Similarly, 10-gram silver rates also increased by Rs34.29 to Rs2,271.94.

Prices in the local market are adjusted by a premium of $20 against rates in the international market.Although the jewellers’ association releases the gold rates based on the bullion rate formula, they are not followed by the jewellers of the other major cities in the country.

One jeweller said that gold rates vary in the different cities of the country. “Rates in Peshawar and Lahore are different from Karachi,” he said. “The weight of gold is not measured in tola in Peshawar as they weigh it in grams and their one tola is of around 12.6 grams. Thus, its price is different from Karachi.”

The gold prices in the local market have jumped after an enormous increase in the international market, where rates have moved to an all-time high, as investors moved towards this metal following a state of war in Europe and the Middle East.

Gold prices in the international market have increased to $2,311 per ounce on Thursday, April 4, from $2,106 per ounce on March 4, which is an increase of $205 or around 10 percent. Prices in the local market moved up by Rs17,200 per tola or 8 percent. Local market rates remain below the international market, a jeweller said.

One analyst said that gold rates in Pakistan remained under control due to the stability of the rupee during the last few months. Otherwise, they could have reached an all-time high long ago.