KARACHI, Jan 10: Local gold prices have touched the highest mark of the current year to Rs6,700 per 10 grams, breaking the last year’s all time high record of Rs6,635 per 10 grams in the wake of possible US attack on Iraq.

In the last 40 days, gold prices surged by Rs648 per 10 grams to Rs6,700 as compared to Rs6,052 recorded on December 1, 2002.

In the last one month, prices of 10-tola gold bar jumped by Rs7,000 to Rs78,000 from Rs71,000.

International gold prices continued its upward rally amid war fears and losing strength of the dollar against main currencies like euro. Global gold price closed at $353 per ounce on Friday. In the second week of December 2002, international gold rates were $326 per 10 ounce.

The trend of piling up the precious metal for safe haven purposes in western countries has been gaining momentum since the rising war tensions between US and Iraq. Foreigners, after losing hopes in dollar and stocks, are now heavily relying on the yellow metal.

“I think international gold rates, currently fluctuating on news of Iraq-US war jitters, will remain under heavy pressure till next week,” chairman, All Pakistan Jem Merchants and Jewellers Association (APJMJA), Kamram Khan, said.

He said domestic market had been witnessing both, buyers and sellers of gold. Buyers are usually on a hunt for jewellery sets in view of on-going marriage season. However, many people are now selling their bullion bars to make a quick buck in times of rising prices.

He said many big shops were receiving bookings for gold bars in anticipation that international gold rates would hit new peaks in the next week, thus making local gold costlier.

Leading market players have already suspended the gold imports last month as they feel rising international prices are not feasible for imports. People, looking for gold jewellery in order to provide some financial assets to their daughters on their marriage, are now bound to pay higher prices.