Gold market reopens after crackdown

Karachi’s Gold market is set to reopen on Saturday following a crackdown on suspected speculative trading, as announced by Haji Haroon Rasheed Chand, President of the All Pakistan Gems and Jewellers Association (APGAJA), a day prior to the reopening.

According to a report in The News, the gold market had been closed for three days while law enforcement agencies conducted investigations into the matter. This temporary closure had left traders and investors in the dark about local gold prices, leading to uncertainty and confusion.

The market was initially closed on Tuesday after gold prices surged by 2.7% to reach Rs215,000 per tola (11.66 grams), contrary to the global downward trend. Some market participants were detained by authorities on suspicion of creating artificial demand and supply imbalances to manipulate prices.

Haroon Chand, in a recorded message, announced the resumption of market operations, emphasizing the association’s commitment to conducting only spot or ready trading, with no room for speculators. Chand also mentioned that steps had been taken to ensure the market’s compliance with regulations and transparency, with authorities agreeing to release some detained market participants.

As the gold market reopens, participants and investors will closely monitor developments, hoping for increased transparency and accountability. This situation highlights the importance of adhering to regulations and maintaining the integrity of the gold market, which significantly impacts the region’s economy and trade.

It’s noteworthy that intelligence and law enforcement agencies have initiated a substantial crackdown on the gold mafia and smugglers accused of manipulating gold prices and evading taxes, according to sources. The government has formed a task force comprising officials from various agencies to take decisive action against these individuals, with the aim of apprehending them for legal proceedings.

Furthermore, the government plans to expedite the computerization of gold sale and purchase transactions and intends to bring gold dealers into the tax net.

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