Gold prices in Pakistan have surged to unprecedented levels, with the price of one tola (11.66 grams) recently hitting a record Rs350,000. This marks a dramatic increase since early 2024, driven by a sharp uptick in global gold prices and a growing wave of local speculation in the bullion market. Internationally, gold is trading at $3,329 per ounce—an increase of over $1,200 in just a few months. Despite the rupee remaining relatively stable at around Rs280 per US dollar, domestic gold prices continue to climb unsustainable.
Discrepancy Between Official and Market Rates
One of the major concerns facing consumers and traders is the growing disparity between rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) and those found in open market transactions. Although APSGJA declared a rate of Rs350,000 per tola, reports suggest that gold is sold in major cities like Karachi at Rs356,000 to Rs357,000 per tola. This has created confusion and raised questions about the transparency and regulation of the gold pricing mechanism in the country.
The Role of Karachi Bullion Exchange
Adding complexity to the situation is the Karachi Bullion Exchange (KBE), which resumed operations recently after a six-month break. The exchange sets gold rates daily during its trading window from 4 PM to 8 PM. However, concerns remain about the authenticity of these rates, particularly in the absence of official gold imports. Industry insiders allege that most of the gold is either being brought informally or speculated upon without actual physical trading.
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Consumer Concerns and Market Instability
The current surge in Gold prices in Pakistan and the lack of regulation are once again putting pressure on consumers, especially those purchasing gold for weddings or investment. This situation is reminiscent of events nearly two years ago, when unchecked market speculation led to the arrest of several traders. Despite promises of transparency and reform, little seems to have changed in the way Pakistan’s bullion market operates.
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