Gold markets stop issuing rates to look for ways to curb speculation

gold markets stop issuing rates to look for ways to curb speculation

gold markets stop issuing rates to look for ways to curb speculation

The government crackdown on the bullion market has forced the jewelers to freeze the market and look for ways to curb speculation as law enforcement agencies continue their drive to weed out any and all illegal trading in the gold and precious gems market.

The last time the bullion market in Pakistan issued 24-carat gold was Tuesday, September 12 when the price was settled at Rs 215,000 per tola and since then the traders had not issued new rates for the precious metal. As per reports, the major players in the market are looking into ways to free the market of any speculation.

The All Pakistan Gems and Jewellers Sarafa Association (APGJSA) believes the market will issue new rates on Wednesday or Thursday but the association has not made a formal announcement in this regard. The association is also in talks with traders from all over the country and law enforcement agencies to resolve the matter.

The market came to a grinding halt when the caretaker government led by Prime Minister Anwar ul Haq announced that strict action would be taken against any and all illegal economic activity in the country. His words were followed by a country-wide crackdown against smugglers, hoarders and the illegal currency market. Gold dealers also came under scrutiny as reports circulated in the market of a crackdown against some dealers.

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The APGJSA had said earlier that they were asked to stop the trade of gold altogether for a few months. However, the APGJSA assured the government to stop speculation in the gold and precious gems market and not let gold prices be manipulated to stash wealth.

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The association had announced that a breakthrough had been reached between the traders and the government agencies and trade would begin soon but the market bigwigs are still looking into ways to curb speculation to let the market operate.

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