KARACHI, Nov 28: Gold rates in the local market continued showing an upward rally on the back of rising international prices, touching a new peak of Rs9,750 on Monday from Rs9,700 per 10 grams on Saturday. The price of a 10-tola gold bar was being quoted between Rs114,000 and Rs115,000 as compared to Rs112,620 on November 22. Gold prices rose to Rs9,635 per 10 grams on Tuesday (November 22) from Rs9,515 on November 21. It was Rs9,085 per 10 grams on November 11, 2005. In the last 17 days, gold became dearer by Rs665 per 10 grams.
The rising gold prices in the last 21 days have increased the cost jewellery sets. Many families who have very little time are now bound to pay higher prices to celebrate marriages of their daughters at any cost.
A leading jeweller said gold remained a hot commodity not only in the local market but also in the international market during the last four months of the calendar year. In Pakistan, the marriage season after Eidul Fitr creates an extra demand for gold, while Hindus buy the yellow metal for the Diwali festival. The US, Europe and some Asian countries lift gold sets to celebrate Christmas the New Year.
Another gold dealer at Zaibunisa Street said gold rates in the world markets moved up to $497-498 per ounce from $493 per ounce on November 22. It is likely to hit the $500 level in coming days.
Besides Christmas and New Year buying of gold, he said, the dollar in the world markets was regaining its lost position against various currencies. However, this is going against the international trend as it was observed that when the greenback gains its strength, gold prices plunge, he adds.
As it is hard to gauge actual sales in the absence of any authentic statistics, a random market survey reveals that gold shops witness a rush of buyers and sales are at peaks because of the ongoing marriage season.
Many families who have started late buying of gold sets are now paying higher prices, while others who had made purchases much ahead of the marriage season somewhat paid less as gold prices are witnessing a rising trend in the international markets.
Gold is now being imported in small quantities as rising global prices have made gold imports unfeasible for importers, the dealer says. The consumption of gold in Pakistan is estimated at 30,000 tolas a day.
Many families, who had earlier planned to buy four sets, skip their plan and decide to purchase three sets on the hope that they will pick up the fourth set after prices come down, the dealer said.
