In Pakistan, gold price per tola (around 11.7 grams) went up to Rs. 50,000, an increase of Rs. 100 from the previous price. 10 gram rate increased by Rs. 86 and stands at Rs 42,857 right now.
In Asian gold markets. the price of the precious metal went up by $6.20 to $1,187.30 per ounce and reached a 5 week high. Experts suggest the increase is due to a weak dollar.
Increasing Trend for Buying Gold?
According to All Karachi Sarafa Jewellers Association president, Haji Haroon Rasheed Chand, the local gold prices are increasing due to rising local demand. He also added that gold prices in Dubai are Rs. 800-1000 lower than prices in Pakistan.
To put this in perspective, gold imports have fallen year on year in 2016. Pakistan Bureau of Statistics mentions that gold imports in Pakistan were at 157 kilograms in July-November 2016. Just a year ago Pakistan imported 297 kg of gold during the same time period (July-November).
If the demand is increasing as mentioned by Mr. Chand, why have the imports decreased?
The Other Side of The Gold Bar
Chairman of All Pakistan Gem Merchants and Jewellery Association, Habib-ur-Rehman says that despite a declining trend in the international gold prices, price of gold in Pakistan has increased by Rs. 1,000 to 1,200 since November 2016.
Explaining this, he said that gold is being smuggled from Dubai to Pakistan right now. It was the other way around from May to October 2016 where gold was being smuggled to Dubai when prices in Pakistan were lower.
He further added that he does not believe people in Pakistan are showing an increased interest in buying gold, contrary to what Mr. Chand said.