KARACHI: The local 10-gram and one-tola gold prices reached new all-time highs of Rs214,077 and Rs249,700, respectively, on Tuesday due to a $20 per ounce increase in global gold prices. These prices were up Rs2,057 and Rs2,400 from Monday.
Amidst mounting anxiety following the Iranian attack on Israel, the international gold price surged to an all-time high of $2,391 per ounce, according to rates released by the All Sindh Saraf and Jewellers Association (ASSJA).
Given that the marriage season starts after Ramazan, families who had chosen to postpone purchasing completed jewelry sets and ornaments until after Eidul Fitr may find themselves in difficulties as a result of the sharp rise in local gold prices.
Given the geopolitical uncertainties, market analysts had differing opinions about whether investors are trying other investment options or buying gold out of fear of more price increases.
According to Topline Securities Ltd. Chief Executive Mohammad Sohail, “some people in Pakistan are investing in gold and trading in the yellow metal futures at the Pakistan Mercantile Exchange.” He also mentioned that a significant portion of savings are now being placed in bank accounts and fixed-income funds, which yield returns of about 20 percent.
Real estate has been a popular investment option because of its better historical returns, according to Samiullah Tariq, Head of Research at Pak Kuwait Investment Company Ltd.
High flour prices are being charged by retailers.
Significant wheat imports also reduced the price of flour no. 2.5, which peaked in February at Rs124 per kg, to Rs104 before Eidul Fitr.
Chairman of the Karachi Wholesalers Grocers Group Rauf Ibrahim stated, “The rate of wheat flour has plunged below the commissioner Karachi’s wholesale and retail rates of Rs123 and Rs128 per kg, respectively.” He urged the commissioner to release updated lists because retailers are defrauding customers based on higher official rates.
He requested that the commissioner take note of the rising costs of bread and bakery goods in spite of a downward trend in wheat rates. “After the price reduction, the price of naan and chapati should drop to Rs15 and Rs10 per piece,” he stated. Chapati costs Rs15–18 per piece, and naan costs Rs25–30.
According to him, the retail price of chakki flour should be less than Rs. 135 per kg, but it is currently between Rs. 160 and Rs. 170 per kg.
According to Mr. Rauf, the government’s monopoly in the retail sector is being challenged by the fine and super fine flour variants, which are being sold for between Rs. 145 and Rs. 160 per kg.
According to Aamir Abdullah, Chairman of the Pakistan Flour Mills Association (PFMA), Sindh Zone, the millers had dropped the price of a 10 kg bag of wheat flour from Rs1,250 in February to Rs978 before to Ramadan.
According to him, the ex-mill price of flour no. 2.5 has dropped from Rs124 in February to just Rs97 per kg.
Prior to Ramadan, the rates of maida (superfine flour) and fine flour were regulated at Rs138 and Rs141 per kg, respectively, according to him.
Around 3.2 million tons of wheat have been imported by the private sector from Russia and Ukraine since September 2023 at lower international rates; the rupee’s strengthening has further lowered the wheat’s landing cost.
According to Mr. Aamir, the cost of imported wheat has decreased from Rs10,800 to Rs8,000–8,700 per 100 kg bag, whilst local wheat is now available for Rs8,900 instead of Rs9,500.
