KARACHI, Feb 14: Gold prices in the local market continued to move higher on Wednesday amid fears of higher oil prices, deepening of crisis over Iranian issue and other flash-points around the world.

The price surge in precious metal is persistent for the last two weeks which is in line with rising trend in the world metal prices.

During the last 15 to 20 days, gold prices in the domestic market surged by around Rs1,500 per 10 grams on being presently quoted at around Rs13,100.

In the face of rising tensions and security concerns, dealers believe that gold prices in the world markets would continue to rally higher, and in the next 10 to 15 days, the precious metal may even cross $700 psychological barrier. Since the local market totally depends on world market from where the precious metal is imported, therefore, it does not matter much, if there is a slackness or high demand in the domestic market.

Gold prices in the world markets last Friday rallied to seven months peak around $674 per ounce, thereby showing a price rise of around $31 per ounce over the last two weeks.

Much of the buying in the world markets, including New York and London metal markets, is coming from fund managers and other corporate buyers who feel investment in gold as a safe heaven under given insecure global situation.

In the domestic market, gold prices were being quoted around Rs12,640 per 10 grams a fortnight ago but were quoted at Rs13,100 on Wednesday, thereby showing a rise of around Rs1,500 per 10 grams.

Despite the fact that there is a slackness in gold demand in the domestic market owing to Muharram as no marriages are taking place, but still the market is highly volatile and prices are consistently rising on each passing day.

A leading gold dealer, Akhtar Khan Tessori, told Dawn that as long as Iranian nuclear issue with the West was not resolved, gold prices in the world market would continue to rise, thereby having an equal impact on domestic market.

He said even when Iraq crisis was looming, gold price surged in the world market which also influenced the domestic gold prices.

Mr Tessori said that since gold is being entirely imported, therefore, any change in the world gold prices tends to directly have an impact on local market.

The recent increase in stamp duty on property and revision of valuation table by the Sindh government have dampened the real estate business for the time being and investors have found gold as a best and safe mode of investment. Besides, renewed rising trend in oil prices and general fear of opening up of new flashpoint in the Gulf is also worrying investors who preferred putting their idle funds in gold.