KARACHI, May 3: The price of 24 carat gold on Wednesday touched a new record peak of Rs13,099 per 10 grams from Rs12,747 on Tuesday on the back of persistent increase in international gold rates.
The price of gold surged by over Rs3,560 per tola in just last four months in local market. Currently 24 carat gold was priced at Rs15,260 per tola as compared to Rs11,700 on January 1, 2006.
On Wednesday the price of gold on the London Bullion Market reached $676.75 per ounce for the first time since October 1980. The precious metal has seen its value rise 30pc since January 1, 2006. Market reports suggest that it may cross $750 level as Iran issue is gaining heat.
The one tola gold price had jumped by Rs5,360 in the last one-and-half-year. It was Rs9,900 on January 1, 2005. The gold price had touched a record peak of Rs12,000 on April 18 when international rate hit a 25-year high of $616 per ounce.
As the international rates of the yellow metal have been fluctuating on the back of Iran nuclear issue coupled with hectic buying by central banks of Russia, China, Germany and Japan gold rates in Pakistan will continue to remain highly volatile.
“Gold price is going up as hectic buying by some countries has led to shortage of bullion in the world markets,” All Pakistan Gem and Jewellers Merchants Association (APGJMA) chairman Saeed Mazhar Ali told Dawn.
He said that in Pakistan gold had emerged as a new investment avenue as investors were getting returns in a fortnight or a month’s time. “Time has gone when people wait for years to earn profit on gold investment. Gold is still considered as a safe investment or cash reserves like real estate,” he added.
He did not agree that families which were buying jewellery for their daughters were the loser in view of rising prices. “If a family pays the price of Rs15,260 per tola depending on the make and designs of jewellery sets it is definitely going to pay off in long-run and even in the short-run since gold rates have started hitting new record peaks after every months or fortnights,” he explained.
He said that sales of gold bars had been increasing since investors and even cash rich people got a clue that the yellow metal prices were going to fly high. Even, he said, sales of jewellery sets had been going at a normal pace.
Akhtar Khan of Tessori Group said that surprisingly jewellery sales had been going normal but people did enquire about record jump in local gold rates.
He said that investors had become active in bullion trading as they preferred to buy coins and bars in anticipation of earning quick profit in view of rising prices on the international market.
He claimed that investors were now diverting to gold trading after having ventured in risky stock business as they felt it quite safer.
