KARACHI, Nov 3: Local gold prices on Saturday touched fresh all-time peak of Rs15,640 per 10 grams, from pervious high of Rs15,320 on Friday after international bullion prices hit the $800-level.
As a result, the price of one tola gold bar reached to Rs18,250.
Last year the international gold prices hit the highest level of $759 per ounce while local tezabi gold (10 grams) touched the peak of Rs14,400, while gold per tola rate was Rs16,600.Domestic gold rates are likely to remain under pressure owing to rising world prices. The yellow metal traded at highest level of $807 per ounce in global markets on Friday and various economic and political factors are giving up extra daily heat to the bullion prices.
All Sindh Saraf and Jewellers Association (ASSJA) President Haji Haroon Rasheed Chand said that the world gold prices would hit $820 per ounce in case tension further mounted in the Middle East and the dollar continued to lose its strength amid rising oil prices.
The sharp rise in gold prices has forced many people to sell their old jewellery sets to purchase new sets of latest designs for their daughters. People think by doing this they will get some relief in shape of paying low prices but they are loser because jewellery sets are usually made with fine gold bars, he added.
Haroon ruled out that the promulgation of emergency would have any impact on gold prices as they are linked with international rates. However, he said that people may start investing in gold as it was considered as a safe capital in times of economic and political crisis.
He said gold imports had almost been very negligible for the last one and a half years.
Latest figures of Federal Bureau of Statistics revealed a decline of 87 per cent in quantity to 314 kgs ($6.3m) in July-September 2007 from 2,555 kgs ($48m) in the same period of 2006.
Gold imports used to cost only Rs32 per tola including import duty and income tax ahead of announcement of budget 2006-07. After the imposition of one per cent wealth tax, the cumulative impact of duty and tax had surged to over Rs200 per tola.
He said despite very low imports, gold demand is met either through selling of gold bars by the investors who had purchased it in times of low prices or through the selling of old jewellery sets in the markets.
