Speculation hits local bullion market
In Pakistan, it seems that the larger the depreciation in the rupee at domestic “open markets” – compared to interbank market – the higher the price of gold. photo: file
Speculation on gold has reached the point of frenzied buying to the extent that the representative body of gold traders did not announce its official rates.
"We have closed the local gold market due to the instability in the market and did not announce the gold prices on Wednesday," said All Pakistan Supreme Council Jewellers Association Chairman Haji Haroon Rashid Chand.
He said that until the precious yellow metal starts trading at real prices, the association will not quote its official rates. "Currently, there is too much speculation, people are making forward deals rather than physical trading," he said and added that like dollar, many investors have started buying the precious metal to make quick profits.
On the other hand, the jewellers say that the sale of gold jewellery has plunged due to inflation although it is the peak wedding season when most gold ornaments are sold. Meanwhile, customers at gold jewellery showrooms at Zaibun Nissa street said that the gold association has given freehand to jewellers to sell the commodity at higher prices.
They pointed out that gold is selling at 10 to 12 per cent higher price in Pakistan than the rates in the international market.
Published in The Express Tribune, December 22nd, 2022.