KARACHI, Dec 6: Domestic gold prices continuing their upward trend rose to Rs9,957 on Tuesday from Rs9,865 per 10 grams a day earlier owing to persistent increase in gold prices at the global level.

Consumers buying gold jewellery sets paid Rs11,615 per tola on Tuesday as compared to Rs11,560 on Monday.

International gold prices maintained the rising trend; touching over $510 per ounce (a 23-year record high) over reports of inflation worries in the United States creating alarm that gold prices may further go up in coming days.

From Rs9,085 on November 11, the gold price has surged by Rs872 per 10 grams in the last 25 days, thus mounting extra pressure on the people who are on a hunt for jewellery sets for their daughters during the current peak marriage season in the country.

The 100 per cent increase in bullion prices in the last six years has also benefited the State Bank SBP) to some extent. The price of gold reserves held by the central bank, which was Rs47.5 billion during July-June 2003-2004, rose to Rs54 billion during the same period of this year due to increase in prices.

A State Bank official said on Tuesday that the gold reserves have been same for the last many years as the Bank does not buy or sell the yellow metal from its reserves. The increase in reserves is, however, due to the price hike in the bullion market.

On the other hand – late comers both for spot buying and advance booking continue to suffer by paying higher prices for jewellery sets.

It is still not clear whether the gold prices at the international level have reached the saturation point. As long as the international oil prices continue to rise there is a little chance that the domestic gold rates will fall in coming weeks.

A jeweller said that the gold prices in world markets will fall with the decline in oil prices, end of inflation worries in the USA and euro gaining strength against the dollar.

He said that the traders in Dubai and Hong Kong were speculating about higher prices touching $510-530 per ounce and in such a situation there is no question of decline in domestic price of gold in the near future.