On Tuesday, a significant $20 per ounce increase in global gold rates propelled local gold prices to new record highs. The price for 10 grams reached Rs214,077, while one-tola prices surged to Rs249,700. This marks an increase of Rs2,057 and Rs2,400 respectively, compared to Monday’s rates.
According to the All Sindh Saraf and Jewellers Association (ASSJA), international gold prices soared to an all-time high of $2,391 per ounce amidst escalating tensions following an Iranian attack on Israel.
The surge in domestic gold rates may pose challenges for families who had planned to purchase jewelry sets or ornaments after Eidul Fitr, particularly as the marriage season commences after Ramadan.
Market analysts are divided on whether individuals are opting to invest in gold or explore other investment avenues amidst fears of further price hikes due to geopolitical tensions. Some are investing in gold and trading in gold futures at the Pakistan Mercantile Exchange, while others are directing significant savings towards bank deposits and fixed-income funds generating returns close to 20%.
Meanwhile, in the realm of flour prices, significant wheat imports have led to a decline in flour no. 2.5 prices to Rs104 per kg from Rs106 before Eidul Fitr, compared to its peak of Rs124 per kg in February.
Retailers have been urged to adjust their prices accordingly, as the current rates have fallen below the commissioner Karachi’s wholesale and retail rates of Rs123 and Rs128 per kg respectively. Despite this reduction, some retailers continue to charge higher prices for bread and bakery products.
The Pakistan Flour Mills Association (PFMA), Sindh Zone, reports a reduction in the prices of wheat flour and its variants, attributed to lower international prices and rupee appreciation. Imported wheat prices have notably dropped from Rs10,800 to Rs8,000-8,700 per 100kg bag, while local wheat is available at Rs8,900 compared to Rs9,500 previously.
