3,249kg gold imported during July

LAHORE: During the first month of current fiscal year, about 3,249 kilogram of gold worth of $134.92 million was imported which showed an increase of 1,119.88 per cent against the same period of last year.

According to Pakistan Bureau of Statistics (PBS) data, about 199kg of gold worth $11.06 million was imported in July 2012. The import of gold also increased by 235.19kg as compared to the imports worth of $40.252 million during June 2013.

The overall imports of metal group registered an increase of 49.39 per cent and 5.88 per cent during first month of the year 2013-14, when compared to July 2012 and June 2013 respectively.

The metal imports into the country during the period under review were recorded at $331.574 million against $221.957 million during July 2012 and $313.148 million in June 2013.

Similarly imports of iron and steel scrap registered a growth of 0.87 per cent and 15.94 per cent during July 2013 as compared to those during July 2012 and June 2013 respectively.

The imports of iron and steel decreased by 6.51 per cent and 50.01 per cent as compared to July 2012 and June 2013 respectively. The imports decreased from $86.357 million during July 2012 and $164.618 million in June 2013 to $80.736 million during July 2013.

The imports of aluminium wrought and worked during July 2013 decreased by 6.8 per cent and 15.35 per cent during July 2012 and June 2013 respectively. The aluminium wrought and worked imports during first month of current fiscal year stood at $9.445 million, whereas it was recorded at $10.134 million and $11.158 million during July 2012 and June 2013 respectively.

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Gold fades shine locally, surge globally

LAHORE: The rates of gold have dropped to Rs 46,500 per tola across the country week-on-week (W-o-W) basis, on the back of plummeting prices up to $30 per ounce in the global gold market. The price of precious metal in the local market has been decreased by almost Rs 1,000 per tola (11.25 grams) in last week.

The thorough study of gold prices revealed that the downward trend in prices have been continuing since last six months in the country because of many factors. However, if upward trend of dollar did not exit and greenback remained under Rs 100 per dollar, the rates of gold might have been under Rs50,000.

It is a pity that dollar is melting down in international currency market against yen, franc and pound while it is gaining weight against Asian currencies including Malaysia, India and Pakistan.

Market sources are of the view that rates of yellow precious metal had been dropped to a three-year low in the international market to near $1,375 an ounce, putting it on course for its worst quarterly performance in over half a century.

An office-bear of Lahore Sarafa Bazar Association on the condition of anonymity predicted that gold prices would further drop in the coming days without giving solid reasons. When asked that dollar is gaining more value against local currency, how is it possible that gold prices would be tumbled, he could not rationalize his answer.

However, he had firm belief that gold prices would further come down in the near future. While predicting further decrease in gold prices, he said that rates of gold are expected to be dropped down up to Rs40,000 per tola.

On the other hand, precious yellow metal prices have been surged in New York and other business hubs of the world on W-o-W basis since spot gold was up 0.7 percent at $1,375.40 an ounce on Tuesday trading, having previously hit a session low at $1,352.20, while US gold futures for December delivery were up $9.60 at $1,375.30 an ounce despite the fact that dollar index fell 0.5 percent, tracking a drop in US Treasury yields and as investors chose safe haven currencies over the dollar in the uncertainty ahead of the release of the Fed minutes.

While giving reasons of declining prices of gold in the country, experts are of the view that as value of the dollar is increasing, therefore, people have started selling their gold to buy currency.

Earlier they were selling off dollar to buy gold, they said adding that America’s economy is improving as Obama administration has improved its relationship with North Korea, Iran and other nations, giving a boost to US economy.

Though few traders are of the view that rates of precious yellow metal would further drop in the country but it is expected that prices of gold would surge in the coming days as Pakistani investors have no role in fixing gold price locally.

Only US government and international investors can fluctuate gold prices globally according to their aspirations otherwise local investors just conceived international trend and set prices of gold locally according to dollar parity.

Gold rates remain stable; may fall further

SYED MOHAMMAD TAHIR

 LAHORE: At a time when gold buying season is going to out owing to the advent of Ramazan month in Pakistan and plummeting demand in India, the world’s largest gold consumer, when wedding and festival season came to an end, the shopkeepers and buyers have taken a sigh of relief on the stability of precious metal’s rates.

Conversely, gold prices soared in America as resilient demand for coins and bars remained high in the US equities market in last week. The brokers are of the view that rising geopolitical tensions in the Middle East also boosted the metal’s safe-haven appeal.

Western diplomats said the United States is considering setting up a no-fly zone in Syria, which would represent its first intervention in that civil war, after the White House said Syria had crossed a “red line” by using nerve gas.  The metal rose about 0.3 percent on the week. It has now posted gains in three of the last four weeks following a historic two-day selloff in mid-April.

Last week, gold prices in Pakistan hovered near Rs 52,700 per tola after touching a peak of Rs 65,000 per tola last year.  While US data in last week showed consumer sentiment edged off a six-year high in June, whereas manufacturing output picked up a bit last month after two straight months of declines, suggesting the economy remains on a moderate growth path. Markets will watch closely the US Federal Reserve policy meeting on June 18 and 19. Most economists expect the Fed to scale back the size of its bond purchases by yearend, and several expect reduced buying as early as September.

Likewise, in London gold held steady near $1,385 an ounce last week and was on track to end the week little changed as dealers’ awaited clearer direction on the Federal Reserve monetary easing policy. The Fed’s next policy meeting takes place early next week. An array of firmer-than-expected US data recently has fuelled speculation it could be on track to rein in its $85 bullion monthly bond-buying programme. Spot gold was steady at $1,385.61 an ounce at 1337 GMT, having earlier dipped as low as $1,378.04, down 0.5 percent. Gold is little changed since last Friday, and has ended the last four weeks in a $10 range. “(Gold) cannot break below $1,370 and cannot break above $1,420,” Afshin Nabavi, head of trading at MKS, said.

Though the gold rates have been reduced significantly but still it is out of the reach of common people in Pakistan and people who intend to buy yellow precious metal are still waiting for more cut in its rates. As off-season in the shape of Ramazan month is just drawing to near, it is expected that rates of gold would further fall.  In the neighbouring countries like India, the demand of gold is also falling on the pretext of multiple reasons including wedding and festival season coming to an end.