KARACHI, Aug 5: Local gold price plunged by over Rs1,543 per 10 grams in the last 14 days owing to a downward trend in the world gold prices caused by falling crude oil prices.

On July 22, the local gold price had hit a record peak of Rs22,414 per 10 grams. On Tuesday, the price fell by Rs514 per 10 grams to settle at Rs20,871 per 10 grams as compared to Rs21,385 on Monday.

The rate of one tola gold bar, after achieving a record high of Rs26,150 on July 22, fell to Rs24,350, down by Rs1,800 per tola in the last 14 days.

The international gold rate is now quoted at $885 per ounce as compared to $910 per ounce on Monday. In the last week of July, it was $929 per ounce, while the yellow metal hit a record peak of $973 per ounce on July 22.

However, jewellers think that the falling domestic rate has still not pulled buyers of jewellery sets in larger numbers in markets as price is still beyond their reach.

Former Chairman of All-Pakistan Gem Merchants and Jewellers Association, Raisuddin Shaikh said rising food prices, coupled with surging petroleum rates and other burgeoning expenses, have pushed up cost of living and a majority of consumers now seriously ponder before purchasing jewellery sets and other gold ornaments.He said the local rates are likely to decline further as international markets are now swirling with predictions that gold rate may come down to $850 per ounce in view of falling trend in international crude oil prices.

He said that the trend of artificial gold jewellery purchase is rising, and many families were bringing their decade-old jewellery sets for renovation.

Saeed Mazhar Ali of Almas Gem and Jewellers said gone are the days when people used to give two to three sets on their wedding as people now are perturbed as to how they would be managing a single jewellery set.

He said there might be a slight wave of jubilation for the price conscious people who have been waiting for the price fall to place orders or for spot buying, but overall sales have not picked up sharply.

Saeed said investors, who had lifted gold bars in the booming period, are now releasing them for fear of a further fall.

Gold imports fell by 95 per cent in terms of quantity and 89 per cent in terms of value in 2007-2008 compared to 2006-2007.

A total of 1,052 kg ($24 million) of gold was imported in 2007-2008 as compared to 24,369 kg ($224 million) in 2006-2007.

However, export of jewellery went up by 382 per cent to $203 million in 2007-2008 as compared to $42 million in 2006-2007.

President, All Karachi Jewellers Group, Haji Haroon Rashid Chand, was of the view that that there had been no instant consumers’ response in markets over falling price of gold as buyers still think that over Rs24,000 per tola is still the highest price.

Perhaps consumers might feel some respite when gold price will range between Rs20,000-22,000 per tola, he added.

He claimed that sale of jewellery sets is still laggard. People are still bringing old jewellery sets in the market for making new sets.

Besides, rising street crimes are forcing people not to take any risk in making costly gold sets and it is better to have artificial jewellery sets.