Since September 13, 2023, trading in gold bars has been banned at the major bullion markets around the nation. This has led to anxiety among buyers and traders.
Gold dealers claim that the suspension of the gold market followed orders from law enforcement authorities looking to curtail fraud in the bullion trade, such as price speculation, smuggling, and hoarding by various mafias and profiteers.
Early in September, the price of gold reached a high of Rs. 240,000 a tola, reportedly driven by investors and speculators. However, gold is also being smuggled into nearby nations, which has caused its prices to skyrocket.
Due to the increased prices of gold jewelry and the declining purchasing capacity of a sizably bigger segment of society, the sale of gold jewelry has almost completely stopped in the local marketplaces.
Since September 13, the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) has likewise ceased publishing the price of gold.
According to APSGJA President Haji Haroon Chand, “The trade of gold is expected to resume in the coming days once the revised trading rules are defined by the authorities and will be based on the physical trade of gold rather than the prevalent malpractice of trading on paper.”
“The new and improvised rules of business in the bullion market will restrict speculation, hoarding, and smuggling of the precious metal in addition to keeping prices in check on a local level. According to Chand, it will also include the dealers’ investments and financial information.