“Gold has sparked extensive buying at recent highs in the last two to three days in world markets following the weakening of the US dollar,” Rays Commodity Chief Operating Officer Adnan Agar told The Express Tribune.
All Sindh Saraf and Jewellers Association reported that gold surged $5 to $1,328 per ounce (31.10 grams) in the international market just before they announced the record high price for domestic market for the next 24 hours. Goldprice.org suggests gold was trading at a 10-month high of $1,337 an ounce later in the day.
Pakistan, which is a relatively small bullion market and largely relies on imports, issues gold prices every day after incorporating factors like prices in the world market, movement in the US dollar in international and domestic markets and the demand and supply of bullion in the domestic market.
The association announced an increase of Rs300 per tola to Rs68,500. “Bullion may go up to $1,345-1,350 an ounce under the current uptrend,” the analyst said.
“Likely end of trade war between the world economic powers - the US and China - should invite correction in the world market. The US has set the deadline of March 1 to end the war. Meeting the deadline seems impossible, but a likely extension in the deadline should invite correction,” he said.
Association President Haji Haroon Chand said the return of China to the bullion market at the end of its annual holidays had fuelled the rally. The Chinese central bank has recently reported having made significant gold buying before the holidays.
Published in The Express Tribune, February 20th, 2019.
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