Gold dazzles to new high of Rs81,000/tola

KARACHI: While the prices of bullion are trending down around the world, gold on Wednesday once again dazzled the local market, increasing by Rs500 to reach yet another record high of Rs81,000/ tola, which dealers said was due to further depreciation of rupee.

Gold in the domestic market was selling for 80,500/ tola on Tuesday.

According to the rates, announced by Saraf and Jewelers Association, the price of 10 grams of gold increased Rs428 to Rs69,444 from Rs69,016 a day earlier. In the international market gold traded at $1,404, down $25 against $1,429/ounce.

Abdullah Razzaq Chand, a member of All Sindh Saraf and Jewelers Association told The News that in spite of a fall in the gold prices in the international market, local rates increased in the local market, as rupee saw a devaluation of Rs6 against US dollar to Rs164 in the open market.

“With currency depreciation, the ‘under cost’ in the local market increased to Rs3,000/ tola from Rs2,500 a day before, compared to Dubai gold rates,” Chand said. A continuous surge in the gold prices in the international market and unstable rupee were the two major reasons behind the surge in prices, another dealer said. Since July 18, the per tola price of 24 carat gold has increased by Rs21,500, while price of 10 grams of the yellow metal has risen by Rs18,400. During this period, the international gold market increased by $178/ounce.