KARACHI, Nov 22: The rising trend of bullion rate on international markets continues to exert pressure on the domestic prices at a time when marriage season is at its full swing. Gold rates on Tuesday surged to Rs9,635 per 10 grams from Rs9,515 a day earlier.

Gold price was Rs9,085 per 10 grams on November 11, 2005. In the last 12 days, gold became costlier by Rs550. The 10 tola gold bar now costs Rs112,620.

Many families are out in the market to buy gold jewellery for their daughters which is considered a financial security for the bride. Even many friends and close relatives prefer to gift gold rings, bracelet, necklace, tops etc., on this occasion.

Any increase in the rate makes a quick impact on prices of jewellery. For instance, a jewellery set of 15 tola becomes costlier by Rs3,000 in case of Rs200 rise in bullion price in a single day.

All Pakistan Gem Merchants and Jewellers Association (APGMJA) patron-in-chief Akhtar Khan Tessori said that the gold prices on the international markets touched $493 per ounce on Tuesday and it was heading to hit $500 per ounce level.

He said that Christmas buying could also be attributed as another reason of pushing up gold demand in the Western countries.

In domestic markets, he said that sales of jewellery sets had been going normal because of the ongoing marriage season that started after Eidul Fitr.

He said that many families had started buying of jewellery much ahead of the original time of marriage in anticipation that the yellow metal may become further dearer with the passage of time.

Akktar Khan said that gold was being imported now in very small quantities owing to higher prices. He claimed that gold was cheaper in terms of value by Rs50-100 per tola as compared to Dubai these days. Gold consumption in Pakistan is estimated at 30,000 tolas a day.

He added that people were investing in the yellow metal by purchasing various sizes of gold bars since the prices had started appreciating.

APGMJA chairman Saeed Mazhar Ali offered a different view saying that sales had been slow as people who did not need jewellery sets urgently or they had 15-20 days, were following wait-and-see policy. “Only those people are coming out who have got only few days left in their daughters’ marriage.”

He also claimed that only those parties, which are engaged in export business, were importing gold otherwise gold import currently was not feasible as it was now selling under cost in the city by Rs100 tola as compared to Dubai.

“People definitely invest in gold as it pays the investor in the long-run which is much clear from the rising trend in bullion prices in the last few years,” he added.

Mohammad Sohail, head of research at Jehangir Siddiqui, said that frankly speaking there had been no tradition of investing in gold especially among the common investors, who play in stocks, real estate, national saving scheme and new banking deposit schemes.

“I am sure that jewellers themselves are the actual investors in their trade by importing gold when prices are down and then to make windfall at a time of increase,” he said.

Because of the fact that there has been no commodity exchange of gold where the precious metal is traded like trading of shares of various companies at three leading bourses, this factor also discourages many prospective investors to take any future risk in the yellow metal investment, Sohail said.

In case a commodity exchange comes up and gold starts trading on that front, many investors will take the plunge in this trade, he added.

He said that international gold rates are touching the ceiling as people are lifting the gold for safe haven purpose since the performance of the US economy had not been satisfactory. International gold prices usually go up when dollar falls against various rival currencies.