The relentless surge in gold prices has become a growing concern for both buyers and dealers in Peshawar’s Sarafa Bazaar. Presently, the market quotes pound pasa at PKR 220,000 per tola, while a tola pasa commands a price of PKR 230,000, reflecting the ongoing trend of daily price hikes.

Speaking to TNN, Haji Sher Farzand, President of Sarafa Bazar, along with Senior Vice President Alhaj Farhad Ahmad Saraf and General Secretary Abdul Wahab, identified several factors contributing to the escalating gold prices. Fluctuations in the dollar, stock exchange dynamics, political instability, rupee depreciation, and a struggling economy directly impact the gold market.

As gold is internationally traded in dollars, changes in the dollar’s value directly influence gold prices. The dynamic nature of the dollar’s value results in fluctuating gold prices, impacting markets globally. Sarafa Bazar representatives assert that the local gold business is intertwined with the stock exchange. Positive trends in the stock exchange correlate with favorable gold prices, while bearish trends lead to increased gold prices.

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Sarafa Bazar relies on gold imports from Dubai and Saudi Arabia, with occasional orders from Lahore and Karachi, making it susceptible to the market conditions in these countries. The ongoing wedding season has traditionally boosted gold sales, but the current economic situation has prompted a significant decline in gold purchases.

The market’s predicament is exacerbated by a declining number of customers, leading to increased operational costs for shopkeepers. Rising rents, electricity bills, equipment prices, and labor wages, coupled with heavy taxes, have prompted numerous businessmen to exit Sarafa Bazar, seeking alternative livelihoods such as driving rickshaws or opening small grocery stores.

Previously bustling shops with multiple staff now witness a stark reduction in workforce. ‘Ustad’ and workers (artisans) have been let go, and the few remaining handle operations with increased challenges. The economic downturn has led to a 70% drop in customer numbers, with people now prioritizing basic needs over gold purchases.

Citizens from Peshawar express concern about the trend of individuals selling gold to meet essential needs, even at a loss. If this trend persists, there’s fear that gold will lose its significance in cultural and relationship contexts, impacting traditions and consumer behavior.