February 9, 2002	Saturday	Ziqa’ad 25, 1422

KARACHI, Feb 8: Gold prices surged by over Rs250 per 10 grams in the last four days to Rs5,868, from Rs5,615 on February 4. Gold has become costlier by Rs313 per 10 grams in last nine days.

Bullion dealers link the price surge to rising global prices in the last few days. On Friday, global prices closed at $305 per ounce as compared to $287 on February 3 and $290 on February 5.

“We have stopped importing gold since the international prices have shot up in the last three to four days,” Chairman All Pakistan Gem Merchants and Jewellers Association (APGMJA), Kamran Khan told Dawn on Friday.

Pakistan’s gold imports of around 10,000 tola per day are currently being managed by three leading importers — ARY, Pardesi and Tessori.

Gold imports had remained suspended from June to November, 2001 due to uncertain global prices followed by September 11 incidents, triggering further flare up in prices.

Kamran attributed the price hike in world markets to sudden change of investors’ mood towards the yellow metal after losing hope in the stock markets. Reports arriving from New York and London reveal that the international gold prices may remain under pressure in the next week due to forecast of economic uncertainty and volatile stock markets and exchange rates in the West.

In the domestic market, Kamran said no major shake-up was seen in the daily buying tendency by the people in the last three to four days as buyers are in the market due to current marriage season.

In Pakistan, investors usually speculate in stocks, real estate, dollar and gold. Under prevailing situation, investors lost their confidence in dollar as it has lost its edge over the rupee. They are currently cashing their luck in property, bourses and gold.

Jewellers said that customers, usually on a hunt for jewellery and gold ornaments for the ongoing marriage season prior to Eid- ul-Azha, are bound to take a costly ride to fulfil a basic formality for the new bride.

Prices of bullion mainly depends on the international price fluctuations and rupee-dollar parity.

Importers manage gold imports by lifting dollars from the open markets. In the last 15 days, the rupee has gained its strength by one per cent against the dollar in open market. Since September 11 tragedy in the USA, the rupee has appreciated by four per cent against the greenback, making imports cheaper into the country.