Gold hits historic high, prices of commodities rise in Pakistan
Friday, 25 September 2009
ISLAMABAD, Sept 24: Gold price hit a record high at Rs31,324 per tola as compared to Rs31,050 a day earlier, propelled by the international market where the rate went up to an 18-month high. On Friday, the 10-gram rate soared to Rs26,828 against Rs26,614 on Thursday, according to The News International.
Traders said demand for the precious metal perked up during September due to a number of factors such as US dollar's slide against the euro, Chinese buying for strengthening reserves and growing investor interest in the metal as an alternative asset. A significant surge of Rs1,324 was recorded from September 3 to 18 in the local market.
Gold traders fear that high prices could deter retail buyers ahead of the wedding season, which starts after Eid-ul-Fitr, when demand for the precious metal usually surges. Similarly, many consumers start stockpiling the yellow metal for the marriage season or for investment purpose. Gold sales also pick up in the post-monsoon phase, when people belonging to the farming community in rural areas purchase it.
The government failed to control runaway prices of essential commodities in the city during Ramazan. Retailers sold commodities of their own accord ignoring the City District Government Karachi (CDGK)'s price list. Consumers were being fleeced without any check by price control authorities.
Sugar shortage persisted in the market and kept consumers away due to high prices. One kg of sugar was priced between Rs50 and Rs55 depending on the locality while the authorities concerned fixed the price of the commodity at Rs47 a kg.
Wheat flour was sold for Rs350-400 per 10kg bag. Poor people struggled hard to buy 10kg sack of flour at the subsidised rate of Rs100 during the month. Milk price rose to Rs50 per litre in most areas of the city.
Prices of beef, chicken meat and mutton rose to Rs200, Rs266 and Rs350 per kg respectively. Fruit and vegetable prices soared as these were being sold at double the prices fixed by the CDGK.
Consumers were complaining but push-cart vendors increased prices in view of surging demand in the last week of Ramazan, citing the reason that they were getting commodities from the Sabzi Mandi at high prices.
However during Ramazan, contrary to normal behaviour, the Karachi Stock Exchange 100-share index shot up 16.38 per cent or 1,329 points and touched a 13-month high at 9,437 points on renewed foreign buying as confidence improved. It was observed that in the last week of Ramazan the market gathered strength tremendously.
Traders said demand for the precious metal perked up during September due to a number of factors such as US dollar's slide against the euro, Chinese buying for strengthening reserves and growing investor interest in the metal as an alternative asset. A significant surge of Rs1,324 was recorded from September 3 to 18 in the local market.
Gold traders fear that high prices could deter retail buyers ahead of the wedding season, which starts after Eid-ul-Fitr, when demand for the precious metal usually surges. Similarly, many consumers start stockpiling the yellow metal for the marriage season or for investment purpose. Gold sales also pick up in the post-monsoon phase, when people belonging to the farming community in rural areas purchase it.
The government failed to control runaway prices of essential commodities in the city during Ramazan. Retailers sold commodities of their own accord ignoring the City District Government Karachi (CDGK)'s price list. Consumers were being fleeced without any check by price control authorities.
Sugar shortage persisted in the market and kept consumers away due to high prices. One kg of sugar was priced between Rs50 and Rs55 depending on the locality while the authorities concerned fixed the price of the commodity at Rs47 a kg.
Wheat flour was sold for Rs350-400 per 10kg bag. Poor people struggled hard to buy 10kg sack of flour at the subsidised rate of Rs100 during the month. Milk price rose to Rs50 per litre in most areas of the city.
Prices of beef, chicken meat and mutton rose to Rs200, Rs266 and Rs350 per kg respectively. Fruit and vegetable prices soared as these were being sold at double the prices fixed by the CDGK.
Consumers were complaining but push-cart vendors increased prices in view of surging demand in the last week of Ramazan, citing the reason that they were getting commodities from the Sabzi Mandi at high prices.
However during Ramazan, contrary to normal behaviour, the Karachi Stock Exchange 100-share index shot up 16.38 per cent or 1,329 points and touched a 13-month high at 9,437 points on renewed foreign buying as confidence improved. It was observed that in the last week of Ramazan the market gathered strength tremendously.