Gold price shoots up amid concerns over transparency

KARACHI: As mystery shrouds the lack of transparency in fixing of daily rates, speculation and smuggling after the crackdown on precious metal trade by law enforcement agencies last year, the price of one tola gold surged to another all-time high of Rs263,700 on Saturday, up by Rs1,700 per tola over the previous day’s rate.

As per rates issued by the All Sindh Saraf and Jewellers Association (ASSJA), the 10 gram rate swelled by Rs1,457 to Rs226,080, based on a $20 per ounce rise in world gold rate to $2,512.

Surprisingly, the ASSJA has raised the rate of one tola by Rs1,000 since Thursday (Aug 22) despite a drop in world prices by $20 per ounce.

Many market people and even consumers appear sceptical over the mechanism of fixing daily rates amid fluctuations in world markets, rupee-dollar parity and the demand-supply situation.

They also wonder that since Pakistan does not import the yellow metal either in small or bulk quantities, why are rates determined on a daily basis.

Jewellers had come under the radar of law enforcement agencies (LEAs) back in the second half of last year over reports of speculation, malpractice, smuggling and hoarding. This led to the........

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