As probe continues, gold market remains closed for 5th session

Traders refrained from issuing gold rates on Monday as bigwigs continued to discuss ways to keep the market free from speculation.

The price of 24-carat gold in Pakistan had settled at Rs215,000 per tola on Tuesday, September 12, according to rates shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

Since then, the association has stopped issuing new rates on reports that law-enforcement personnel were conducting a crackdown against some sections of the market.

“The bullion market may start issuing new rates from Wednesday or Thursday,” Haji Haroon Chand, president of the APGJSA, said during an appearance on Aaj News on Sunday.

The development comes as the caretaker government initiated a large-scale crackdown against illegal economic activities such as smuggling and hoarding, prompting several sections of the economy to react in response. The currency market responded with an improved value of the rupee, while gold traders refrained from issuing new rates.

During his appearance, Chand said he held meetings with gold traders in different cities as well as with law-enforcement personnel regarding the matter.

“I will not let any speculation manipulate gold prices and trade in the local market,” he said.

Earlier in an audio message, Chand said he was asked by law-enforcement to stop gold trading for the next three months, but he instead assured them that speculation would end.

“I will not let the speculation mafia reorganise,” he said, vowing efforts to help regulate the undocumented sector.

Meanwhile, the interim government has constituted a task force consisting of law enforcement and intelligence agencies for “decisive action against the gold mafia” and smuggling of precious metals, state-run Radio Pakistan reported on Friday.

A major crackdown has already been initiated against elements involved in illegal activities in the bullion market, it said.

According to details, the task force has prepared lists of those involved in gold smuggling.

In addition, the government has also started work on an emergency basis to bring the gold dealers into the tax net and to computerise buying and selling of the yellow metal.

When the rupee was hitting fresh lows against the US dollar, gold prices in Pakistan witnessed record highs as well.

By the end of the previous month, the price of per tola 24-carat gold had reached Rs239,800 per tola in the local market, which was just Rs200 away from the all-time high price of Rs240,000 per tola witnessed on May 10, 2023.