Gold prices reached a fresh lifetime best at Rs44,742 per 10 grams on Wednesday, to level with skyrocketing global bullion rates, but yet remained undervalued by Rs600 - one of the highest value differences ever.
“International gold prices are a serious source of concern for us as the rapidly increasing prices cannot be immediately translated in the local market due to various reasons. Today [Wednesday], gold is undervalued not only in Pakistan but across many other nations, including India,” said All Sindh Saraf Jewellers Association President Haroon Rashid Chand.
“In Pakistan, we not only have to worry about gold prices, but also other important factors such as persistent power outages and law and order situations. Our markets are badly affected as investors have stopped investing now and gold jewellery customers remain trifle at 20-25% of the usual ebb,” he added.
The per tola (11.7 grams) value of gold was Rs52,200 on Wednesday. Gold had previously peaked last week on July 21, when it had been valued at Rs43,971 for 10 grams and Rs51,300 for the tola.
In the international bullion market, gold gained $6.20 to a fresh all-time high of $1,625.50 at one stage, and was last at $1,624.20/1,625 per ounce.
Published in The Express Tribune, July 28th, 2011.
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