KARACHI, Sept 18: The local gold rates surged sharply by Rs1,542 per 10 grams and Rs1,800 per tola on Thursday in sympathy of rising yellow metal prices on the world markets.

The 10 grams gold price was quoted at Rs21,342 on Thursday as compared to Rs19,800 on Wednesday. On September 11 it was Rs18,857. The one tola gold bar price stood at Rs24,900 as compared to Rs23,100 on Wednesday.

President Karachi Saraf and Jewellers Group Haji Rasheed Chand attributed the increase in gold prices to rebound in international crude oil rates followed by cases of bankruptcy of top US companies forcing stock investors to switch over to gold.

He claimed that gold was still cheaper by Rs700 per tola in Karachi as compared to Dubai.

Saeed Mazhar Ali of Almas Gem and Jewellers at Zaibunisa Street said the sales had been slow these days, but marriage-related buying may gain momentum in the last week of Ramazan.

He said that gold prices on London Bullion Market jumped to $863 per ounce on Thursday at the fixing from $813 late on Wednesday.