KARACHI, Jan 29: Gold prices in local market continued to make a new record, and on Tuesday it closed at the highest peak of Rs18,600 per 10 grams as compared to Rs18,300 on Monday.

The price of 10 tolas of gold bar is now being quoted at Rs217,000.

International gold prices, after remaining under pressure for multiple reasons, also hit a new record of $927 per 10 ounce as compared to $921 three days back.

Despite renewed interest by investors in gold, the future trading volume of the yellow metal at the National Commodity Exchange Limited (NCEL) has been very insignificant.

Market sources said that the NCEL is reported to have approached the Federal Board of Revenue (FBR) for the removal of some of the irritants which are shying away investors in gold.

The NCEL feels that the imposition of one per cent wealth tax should be removed and arrival of gold through illegal channels should be checked so that the commodity could be made an attractive tradeable option for investors.

Bullion players have frequently been saying that the gold imports had either been suspended or were at the bottom rock for more than one year, but interestingly the local markets had not felt any shortage of gold which means that the demand is met through illegal channels.

The NCEL and the bullion traders have been demanding of the government to introduce the old system of Rs2 per tola income tax and 50 cents per tola as duty.

The managing director of the NCEL, Asim Jang, said the NCEL was now focusing on future trading of agriculture commodities, but it does not mean that it was not watching the gold trading.

He said only two traders of Sarafa Bazaars had been active in trading and no new-comer had arrived despite rising prices at the domestic level.

“I am not seeing any interest from investors in gold trading,” he added.

“We are trying to make some changes in the gold future trading in order to increase volume of trading which has been very low,” he said.

He said people are already getting cheaper gold in Pakistan as compared to Dubai, and the investors do not find any big charm to play in the future trading at the NCEL.

Gold imports used to cost only Rs32 per tolas, 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 surged to around Rs240 per tola.

Gold in Pakistan is selling under cost as compared with rate in Dubai.

“There are chances of gold smuggling from Pakistan to other countries, especially Dubai, because of price difference between Dubai and Pakistan,” said the president of All Karachi Jewellers Group, Haji Haroon Chand, adding “gold under current situation cannot come from Dubai through illegal channels as right now it is available at Rs19,440 per 10 grams in Dubai.”

He said that there were slim chances of rising gold trading at the NCEL as only two players had been active from the Sarafa Bazaar and no new player had become member despite rising interest of investors.

Chand said only 25 per cent sales had been going on these days and it may see some improvement after Chehlum.

He said after frequent increase in prices, investors of stock markets and currency have shifted their focus towards gold.