KARACHI: Gold traders on Wednesday opted out of opening new bullion rates at the local market following uncertainty that was heightened by the soaring value of the precious metal.

Gold prices closed at a historic high of Rs178,800 per tola on Tuesday but traders refused to open new rates for the precious metal on Wednesday, citing market uncertainty.

They see speculative trade behind the uncertainty that has gripped the market with ‘no business.’

All Sindh Sarrafa Jewellers Association’s Haji Haroon Chand asked countrywide bullion traders to stop displaying gold rates until he announces a new policy after a meeting in a couple of days.

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He also sought an end to the speculative trade of gold, fearing the unhealthy trend may devastate genuine businesses. He said gold prices have outgrown the market size.

“We have halted bullion rates because of market uncertainty,” he said in an audio message on social media, instructing traders to close down all social media groups for new gold rates until he announces the go-ahead.

He addressed traders that the market will not open new rates until it returns to its genuine business levels. He said gold rates are linked to the global market, which is unfair, since the precious metal, which is dealt in locally, is merely reprocessed and not imported.

“I want to ask the ‘speculative traders’ that there is not that much buying, then where are you getting orders from? he said, adding that speculative trading must end and help reinstate the market on real terms.

Copyright Business Recorder, 2022