Gold prices in the country have been hitting a new high almost every day for the last few days. The precious metal is now trading at Rs78,100 per tola which has witnessed an increase of Rs800, according to the All Sindh Saraf and Jewellers Association.
Ten grammes of gold now costs Rs66,958. The prices compiled by the ASSJA come with a lag of a day after changes in international prices. Pakistani traders adjust gold prices based on price movements in the international market and fluctuation in the dollar rates as well as market forces of demand and supply.
Pakistan, which is a small gold market, largely depends on imports as it does not produce the metal locally. Other factors that the local gold pricing committee incorporates into the retail price include dollar price in domestic and international markets and demand and supply of the commodity in the local market.
The dollar has been on the rise since the opening of the market following Eid holidays. The rise of dollar explains much of the corresponding increase in gold prices, which depend on international gold prices as well as exchange rates. When this report went online, gold was trading at $1,394 per ounce in the international market.
Gold price in the country has been hitting a new high very frequently since the beginning of this year. Last year, gold prices increased 20%, according to the data compiled by the Pakistan Bureau of Statistics (PBS). This rise in the gold price was in line with international prices, which also increased last year. The upward trend continues in 2019.