KARACHI: Gold price hit a new peak of Rs25,114 per 10 grams on Monday as compared to Rs25,028 on Saturday, while per tola gold rate was recorded at Rs29,300 as compared to Rs29,200.
Rising world gold prices, coupled with the devaluation of rupee against the dollar, were the main reasons of the price-hike attributed by gold traders.
One US dollar is now equal to Rs83.40 as compared to Rs82 a month back, making imports costlier.
All-Sindh Saraf and Jewellers Association President Haji Haroon Rasheed Chand said that gold had already made a record of Rs25,550 per tola in the first week of February this year.
The way international prices and depreciation of the rupee is moving, the market may see a new record peak for this year in the coming days.
On July 28, the 10 gram yellow metal was recorded at Rs25,028.
For the last over one month, local bullion rates have been going up.
World gold prices closed at $955 per ounce on Monday as compared to $954 on Saturday. On July 30, it was $935.
He said oil prices are also going up and strangely dollar is gaining strength in Pakistan, while losing its value worldwide to other currencies, he said.
Chand said that in Karachi gold is selling under cost as compared to Dubai.
The government charges Rs332 per tola in terms of various levies on import.
If somebody brings gold from Dubai, it will cost Rs30,232 per tola, he claimed.
The government has levied one per cent withholding tax and 50 cent per tola duty.
According to Federal Bureau of Statistics (FBS), gold imports rose by 50 per cent to $37.1 million (1,254 kg) in July-June 2008-2009 as compared to $24.7 million (1,058 kg) in the last fiscal year.
However, export of jewellery in July-June 2008-09 went up to $288 million as compared to $213.3 million in 2007-2008.
He said many people are investing in gold after smelling rising trend in its prices.
There is no import duty on gold if the yellow metal imports are made for export of jewellery after value-addition.
Jewellery exports had been rising continuously.
As per government policy, any quantity exported in the form of gold jewellery has to be imported in the form of yellow metal within seven months.
He reiterated that there had been no official duty paid imports for more than two years due to imposition of duty.
All-Pakistan Gem Merchants and Jewellers Association chairman Saeed Mazhar Ali said sale of jewellery sets has been going at an average pace in view of wedding season which would conclude on the start of Ramazan.
He said inflationary trend in food prices is not allowing many families to buy gold sets with a free hand for their daughters’ weddings.
He said many families have been trying hard to manage low weight sets with heavy work of semi-precious stones while many people are bringing old jewellery for renovation.LINK