Gold market reopens after crackdown

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

According to a report published in The News, the gold market had remained closed for three days while law enforcement agencies investigated the matter.

The temporary shutdown had left traders and investors in the dark about local gold prices, causing uncertainty and confusion.

The market was initially closed on Tuesday after gold prices surged by 2.7 percent to Rs215,000 per tola (11.66 grams), defying a global decline. Some market participants were detained by authorities on suspicion of creating artificial demand and supply gaps to manipulate prices.

In a recorded message, Haroon Chand announced the restoration of market operations and assured that the association would only engage in spot or ready trading, eliminating opportunities for speculators. He noted that the association had taken steps to ensure market compliance with regulations and transparency. Additionally, some detained market participants suspected of manipulating gold prices were set to be released.

“We expect the market to reopen with rates announced as usual,” Chand stated.

Gold prices increase

As the gold market prepares to reopen, market participants and investors will closely monitor developments, hoping for increased transparency and accountability. The situation underscores the importance of adhering to regulations and maintaining the integrity of the gold market, which plays a vital role in the region’s economy and trade.

Intelligence and law enforcement agencies have initiated a major crackdown on the gold mafia and smugglers, accused of manipulating gold prices and evading taxes. A government task force, composed of officials from various agencies, has been formed to take decisive action against these individuals, who have been identified and listed by authorities. The task force aims to apprehend the alleged mafia and smugglers to facilitate legal action against them.