September 14, 2023 (MLN): Today was the second consecutive session during which the official closing rates for gold and silver were not released. To delve into this matter, Mettis Link News reached out to Haji Haroon Rasheed Chand, the President of the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), who attributed the unforeseen circumstances to the fact that bullion has not been able to provide the closing rates.
However, under the condition of anonymity, confidential sources have disclosed that the declining value of the dollar, attributed to the government's crackdown, has prompted people to begin accumulating gold, especially as it was recently available at lower rates. Thus, the bullion has not released rates.
The source added that this surge in gold transactions has led authorities to crack down against gold dealers, causing panic in the bullion market.
When asked the same question, President Haroon Chand chose not to comment on it.
Rising economic uncertainty often allows bulls to rule the domestic bullion market as people consider parking their money in the hands of their trusted jewellers.
To recall, the rates were not published last time in December 2022, and APSGJA President, in a public message, confirmed the bullion rates were stopped intentionally because of the “uncertain market situation”.
Domestic bullion ended its seven-day downward trend on Tuesday, September 12, 2023, gaining some respite, with the price of 24-karat gold rebounding by Rs5,600 to reach Rs215,000 per tola.
It is important to mention that on the same day, there was only a 2 rupee depreciation in the Pakistani Rupee (PKR) against the US Dollar, while the international price was down by 15 USD. However, speculators still increased the price.
Theoratically, Since gold is denominated in U.S. dollars, when the local unit depreciates against the greenback, the value of PKR-denominated gold rises.
Copyright Mettis Link News
Posted on: 2023-09-14T20:27:26+05:00