KARACHI, April 18: The domestic gold prices touched a new record peak of Rs12,078 for 10 grams on Tuesday from Rs11,745 a day earlier, registering a sharp increase of Rs333 in a single day. The yellow metal rates have been rising with the beginning of the current year due to persistent increase in international prices.
In the local market the one tola gold price surged to Rs14,080. On January 1 it was Rs11,700 and on January 1, 2005, it was available at Rs9,900.
International gold price touched a record 25-year high to $616 per ounce from $593 per ounce on Tuesday.
The marriage season had started after Eid-e-Miladun Nabi (SAW) and many families, with limited budget, were finding it difficult to purchase jewellery sets and bangles for their daughters in view of rising prices of bullion, while for rich class high prices did not matter.
Many families give away gold coins and bars to the bride along with jewellery sets for the financial security of their daughters in case of hard times.
All Pakistan Gem and Jewellers Association (APGJA) chairman Saeed Mazhar Ali said it had been considered that gold had always paid off in the longer run no matter how costly a buyer had bought it. “But for the last few years the situation has changed and investors have been witnessing very short term gains.”
He said all over the world investors had virtually lost their confidence in currency and stocks. “They have switched over to gold procurement, thus pushing up its demand while the supply has been falling. On the back of rising demand, gold prices may remain under pressure in the world markets and its impact will also be felt in the domestic markets, he added.
In developed countries investors feel that investing in gold, generally considered store of value, is save and is like cash deposit, he said, adding that almost same sentiments have started prevailing in Pakistan and people are investing in the yellow metal.
He said that investors in Pakistan were busy buying gold coins ranging from one to 10 grams while some were active in piling up gold bars.
