KARACHI, Dec 5: Continuing its record upward trend gold prices surged to a new high of Rs9,865 per ten grams on the first day of the week. The escalation in gold prices during the current marriage season may put additional pressure on fixed-income middle class families who have to make purchases for dowries.

The gold prices in world bullion markets rose to $507-509 per ounce, a 23-year record high, from $493 on November 22, which greatly influenced the local bullion market. The rate of one tola of gold in the domestic market is now tagged at Rs 11,560 as compared to Rs 11,400 on November 28, and Rs 11,260 on November 22.

Gold prices had surged to Rs9,635 per 10 grams on November 22, from Rs9,515 a day earlier compared to Rs9085 on November 11,making the yellow metal expensive by Rs780 per ten grams in the last 24 days.

The late comers (both for spot buying and advance booking) to the jewellery market are now paying the extra price to buy bridal sets. Some families, who have shelved their plans in anticipation of the price fall in the domestic market, may have to pay more as chances appear slim of any fall in the international rate in the near future.

Jewellers usually do offer some incentives to the buyers in cost of manufacturing, which depends on shops to shops and their location, while they charge fix prevailing price of the bullion for the day.

Conflicting claims continue to pour in as some jewellers say that gold as well as jewellery sales have been going strong despite surging prices while others say that sales have been affected since the yellow metal prices have started climbing up.

A leading jewellery dealer at Zaibunnisa Street said that international prices are expected to go up further over inflation worries in the United States and uncertain dollar position in world markets. He said even the euro is losing strength against the leading currencies.

Besides, the Christmas and New Year buying have further increased the demand of gold worldwide, he added.

The jeweller said that imports have been restricted to limited quantity. Some importers in the country used to bring in 30,000 tolas of gold per day from Dubai but currently the quantity of import has been very negligible.

Raeesuddin Shaikh, A jewellery shop owner at The Forum in Clifton claimed that the jewellers were not getting new orders right now while consumers stuck to their old orders.

“The market has been quite laggard after the persistent rise in the domestic bullion rates,” he said adding that bullion imports have also become very slow.

He claimed that the post earthquake scenario has definitely made an impact on the jewellery markets with sales greatly depressed.

Meanwhile, in London gold hovered near 23-year highs on Monday after another round of fund buying spurred by worries over inflation and a strong appetite for commodity investment, adds Reuters.

Despite fears of looming fund liquidation, runaway gold prices boosted other precious metals, with platinum sitting just off $1,000 an ounce, at a near-26-year high, while silver hit an 18-year peak.

Spot gold briefly hit $508.25 a troy ounce before easing to $504.60/505.40 by 1347 GMT, still up from $503.00/503.80 last quoted in New York on Friday.

Gold climbed to $509.20 in February 1983. Anything above that level would take the metal to its highest since January 1980, when it hit a record $850.