January 04, 2008	Friday	Zilhaj 24, 1428

KARACHI, Jan 3: Gold continued to break all its previous price record of peak level, and on Thursday it touched Rs16,885 per 10 grams while the rate of one tola gold hit Rs19,700.

Global gold rate surged to $865 per ounce after making new record everyday for the last 10-15 days.

Domestic prices crossed over Rs16,000 per 10 grams from the last week of December 2007 while it was Rs15,792 on Dec 1 and the global gold rate was $785 per ounce.

In 2006, global gold prices hit the record level of $759 per ounce while tezabi gold (10 grams) recorded the highest rate of Rs14,400, while gold per tola rate was Rs16,600.

People having specific budget for spot buying of gold jewellery sets in the last days of ongoing marriage season ahead of first Muharram must be facing hardship in managing the extra amount or to have sacrifice by purchasing lower weight jewellery sets.

President, All Sindh Saraf and Jewellers Association (ASSJA), Haji Haroon Rasheed Chand, said the local gold prices had risen by Rs4,000-5,000 per tola from Ramazan 2007 till now, while the prices remained on the higher side during earlier months of last year.

He said sale of gold jewellery sets had fallen by 50 per cent last year owing to higher prices as many people had brought in their old jewellery sets for mixing it in the making of new design sets.

Many people opted to giving sets of low weight on their daughters’ weddings.

He added that high food inflation had kept buyers away from markets.

Local gold rates may remain under pressure owing to rising world prices following huge buying by Russia, China and Japan, and unrest in Pakistan.

Gold price in world markets will hit over $900 per ounce as investors are making a bee-line to buy the yellow metal.

Gold prices in world markets go up after increasing world crude oil prices.

The losing strength of dollar against euro had shifted many investors towards gold besides people lift gold for safe heaven purposes in times of turmoil, he said.

In Pakistan, many people invested in gold in 2007 after continuous upward trend in its prices and the trend still continues.

Gold imports had been very negligible for the last one and a half years owing to rising prices coupled with imposition of tax and duties on its import.

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 tolas, he said.