Saturday, September 16, 2023
Our Correspondent

Pakistan gold market to reopen today after crackdown

Our Correspondent
A customer wears gold bangles at a jewelry shop in this undated file photo. — Agencies
A customer wears gold bangles at a jewelry shop in this undated file photo. — Agencies

  • Gold market was closed for last three days.
  • Bullion rates jumped by 2.7% on Tuesday.
  • Crackdown was launched against speculators.

KARACHI: The Pakistani bullion market will reopen Saturday following a crackdown on alleged speculative trading, All Pakistan Gems and Jewellers Association (APGAJA) President Haji Haroon Rasheed Chand announced a day earlier.

According to a report published in The News, the gold market remained shut for three days as law enforcement agencies probed into the matter.

The hiatus had created uncertainty and confusion among traders and investors, who were left in the dark about the local gold prices.

The market was shut on Tuesday after gold prices jumped by 2.7% to Rs215,000 per tola (11.66 grams), defying a global decline.

The authorities detained some market participants on suspicion of creating artificial demand and supply gaps to manipulate the prices.

The announcement regarding the restoration of market operations was made by Haroon Chand in a recorded message.

He mentioned that the association had cooperated with the authorities and pledged to conduct only spot or ready trading within the market, leaving no room for speculators.

Chand said the association had taken steps to ensure the market’s compliance with regulations and transparency, adding that the authorities had agreed to release some market participants who had been detained on suspicion of manipulating the gold prices.

“We hope that the market will reopen tomorrow and the rates will be announced as usual,” Chand said.

Crackdown against gold mafia

As the gold market prepares to reopen, market participants and investors will closely monitor developments, hoping for greater transparency and accountability.

The situation has underscored the importance of adhering to regulations and maintaining the integrity of the gold market, which plays a pivotal role in the region’s economy and trade.

It is worth mentioning that the intelligence and law enforcement agencies have launched a major crackdown on the gold mafia and smugglers, who are accused of manipulating the gold prices and evading taxes, sources said on Friday.

The government has formed a task force, comprising officials from various agencies, to take decisive action against the gold mafia and smugglers, who have been identified and listed by the authorities.

The objective behind constituting the task force is to nab the mafia and smugglers so that legal action can be taken against them.

The government has also decided to start work on a war footing to computerise the sale and purchase of gold and bring the gold dealers into the tax net.