International prices are stable
Gold prices have increased to its highest in Pakistan with a Rs300 increase per tola on Friday. The precious metal’s international price has, however, remained stable.
The price of gold in Pakistan has largely been led by its international prices. Local prices of gold increase when its international price increase. But on Friday, the international prices remained stable at $1,806 per ounce.
Gold is still underpriced and below the international prices by Rs5,000. It means the tola price of gold in international markets is Rs114,650 against its price of Rs109,650 in Pakistan.
According to the chairperson of the All Pakistan Gem and Jewellery Traders and Exporters Association, Akhtar Tessori, this has happened because gold imports have not been taking place properly due to the COVID-19 pandemic, which has affected trade. It has hurt both exports and imports.
“There’s no more gold coming into the country,” he said.
Tesori says gold has remained underpriced in Pakistan because people here indulge in profit-booking (by selling gold when prices go up) so it keeps gold prices lower than its international prices.