Domestic and international gold prices averted any fall in value after short period buying on Gold Futures speculation on short and long term investment.
Yellow metal closed at Rs 57,380 per tola, meagerly a rise of Rs 09 per tola by the end of trade primarily due to international prices of the yellow metal which closed at &1,324 with $1 increase. In grammage term, metal closed at Rs 49,249 per ten grams, up by Rs 07 per gram.
Rise/fall in prices of gold globally largely depends on fluctuation in international crude oil prices. It is also having an impact on local bullion prices.
However, the escalation of gold prices in local markets is not proportionate with the international markets, because demand for gold declines here whenever the yellow metal becomes dearer globally.
The rates might go considerably up from next week when full-fledged trading would start.
Gold was trading in the local markets at cheaper rates than Dubai and Saudi Arabia, where people have purchasing power. Here the purchasing power of general public has fallen, so they don’t buy gold when it gets expensive because it is not an essential item.
Gold prices in the local markets depend on fluctuations of global bullion rates owing to the rupee-dollar parity, but now it is also linked with international oil price.
Gold imports in the country are at a standstill for more than last ten months, as prices of gold remained higher in the adjoining markets and not affordable for local dealers.
Jewellers’ demand of yellow metal would go up as wedding season would become at its peak before start of Ramadhan.
Published in Daily Times, April 29th 2018.