Gold crosses Rs78,000/tola; domestic consumption falls

KARACHI: Gold increased by Rs630 on Friday as it traded at Rs78,100/tola against the previous day’s price of Rs77,470/tola, continuing to push demand to dangerously low levels, dealers said.

In the international market, gold traded at $1,394/ounce against a rate of $1,384 a day ago. Local rates of 10 gram gold increased by Rs558 as they commodity touched Rs66,958/10 grams against Rs66,400 the previous day.

“Still, local prices are lower by Rs3,000/tola as compared to the international market,” said a goldsmith. Local buyers, including even the middle class, were getting more into the habit of buying artificial jewellery for weddings and other occasions due to the constantly rising price of the commodity, he added.

Jewellers were also worried about the imposition of the federal excise duty, which would further impact the price, hitting demand of the metal. All Sindh Saraf and Jewellers Association President Haroon Rasheed Chand said gold prices were so high that nobody was coming for purchase.

“Turnover has declined to a dangerous level,” he said. “Rupee price is decreasing day by day.” On Friday, the rupee ended flat, though it did gain some strength against the greenback. Chand said the US government had signalled the other day that it might

not increase interest rates, which would attract the investors towards gold, increasing the price of the precious commodity.

This, he said would also put pressure on the domestic gold market, pushing the prices upwards. Criticising the government’s attitude towards jewellers, he said, “The government considered jewellers like ‘lower-caste people’, and was increasing taxes on the commodity’s import. They have not provided us any benefit in any scheme.”

The Jewellers Association has asked the government to extend the amnesty scheme to gold as well. Chand said the government was asked to include gold in the amnesty scheme for whitening wealth, and “authorities agreed in a television programme”; however, a notification was expected in the coming days.

Under the current amnesty scheme, valid till June 30, 2019, the government has allowed to disclose hidden assets and legalise them after payment of 1.5 to four percent taxes.