KARACHI, Oct 11: Gold prices on Thursday fell to Rs5,932 from Wednesday’s price of Rs6,000 per 10 grams as global price dropped by $4 per ounce in just one day.

Global gold prices dipped to $282 per ounce from $286 on selling pressure in foreign markets. Investors, who were eagerly awaiting to see the yellow metal touching new peaks after September 11 incidents followed by bombing on Afghanistan, unloaded their stocks.

Gold bar (116.640 grams) prices also plummeted to Rs68,800 against Rs71,100 of Wednesday.

Gold prices touched to all time high at Rs6,275 per 10 grams on September 22 from Rs5,090 on September 11, resulting in simultaneous price flare up of gold bar to Rs73,800 from Rs68,800.

Now the equation has changed. Gold prices have fallen by Rs343 per 10 grams from September 22 to October 11, while the rate of 10 tola bar has seen a drop of Rs5,000 in the same period.

“I think international market will plunge to $278 per ounce in coming days as market players in America and Europe have started selling the yellow metal despite rising tension on Afghanistan,” chairman, All Pakistan Gem Merchants and Jewellers Association (APGMJA), Kamran Khan said.

He said investors in West were hoping that the gold price would touch to $390 from the peak $292 per ounce on September after attacks of Afghanistan but their assumptions did not materialize.

“It is a strange that people in the West usually start looking for gold in crises but they are now selling it and not considering it as a safe haven,” he said.

Falling gold prices will, however, encourage local investors to procure bullion in order to make windfalls on boom in prices. He said landlords and investors from Punjab have started buying gold from Karachi and around 25,000-30,000 tolas have already found way into the Punjab market in the last two to three days.

He said gold prices in Punjab are now higher as compared to Karachi. For instance, in Lahore and Multan bullion tezabi is currently priced at Rs6,044 and Rs6,129 per 10 grams as compared to Rs5,932 in Karachi.

A month back, Karachi used to be costlier by Rs200 per tola as compared to Dubai market but the situation has now changed and the city is now dearer by Rs50 per tola as against Dubai.

On import of gold, suspended since June due to uncertain market conditions, he said there was a slight possibility now to resume gold imports if the declining trend in international markets continued this week. He said importers might open L/Cs in case global prices range between $260 and 270 per ounce. Pakistan’s average gold imports is 10,000 tola per day which was being done by three importers — ARY, Pardesi and Tessori.

He said falling gold prices might prove a breather for the prospective buyers of gold ornaments. Sale of jewellery has been severely affected after September 11.