March 28, 2007	Wednesday	Rabi-ul-Awwal 8, 1428

KARACHI, March 27: Local gold prices resumed upward drive on Tuesday as the precious metal started climbing on world markets amid falling dollar and higher crude prices as tension between Iran and Western world was heating up.

In the local market gold moved up by Rs58 per 10 grams at Rs13,116 against overnight close of Rs13,048 a day earlier.

Gold dealers expected volatility in rates in coming days as the domestic market was fully reliant on imports. The ongoing confrontation over nuclear issue and now detention of British soldiers by Tehran was jittering international gold markets, they added.

There are strong indications that the US dollar will further come under pressure if the tension lingers on which will encourage investors to seek save heaven in gold investment to hedge their future assets.

In Lahore the precious metal rose by Rs42 at Rs13,091 and in Hyderabad it closed higher by Rs34 at Rs13,030 per 10 grams.

Though there was no sudden surge in local gold demand, the prices were witnessing fresh rise because of the bullish world markets, dealers said.

A leading bullion dealer Akhtar Khan Tessori told Dawn that if the international prices maintain bullish trend, the local market would also rise in sympathy.

He said that traditionally gold buying was confined to marriages and gifts purposes in the country, but now people found it save heaven in uncertain conditions particularly prevailing tensions between Iran and Western powers.

With low return from bank deposits, risky stocks business and somewhat depressed real estate business, gold is a new find for local investors, a gold dealer observed.