KARACHI, Feb 17: The local gold price surged to record Rs24,285 per 10-gram on Tuesday, from Rs23,785 on Monday, in the face of persistent increase in international prices of yellow metal. The one-tola gold bar now costs Rs28,330 as against Rs27,750.

On the London Bullion Market, the gold price rose to $968 per ounce on Tuesday from Monday’s $942.50.

Karachi Saraf and Jewellers Group (KSJG) President Haji Rasheed Chand said that the previous all-time high price for one-tola gold bar was Rs27,200, recorded on October 10, 2008.

He said that the international gold prices on January 1, 2009 stood at $882 per ounce, while in local market gold was traded at Rs25,150 per tola and Rs21,557 per 10 grams.

“Investors and general people are making heavy investment in gold the world over these days amid reports that the yellow metal prices will cross $1,000 per ounce,” he claimed.

He said jewellery sales had been slow after sharp increase in prices. “However, majority of families are bringing in their old gold sets for remaking with new designs for dowry purposes of their daughters,” he added.

Mr Chand said when gold price surged sharply, the arrival of old jewellery sets in the market rose as new sets became beyond budgets.

He said families which earlier used to give three to four gold sets were now buying only one or two sets for wedding of their daughters.

He also claimed that the gold import had been suspended since the increasing trend in prices. “Old gold is meeting the market demand,” he remarked.

After uncertain future of stock market followed by laggard property prices and losing charm in currency, investors are now venturing in gold business, he added.

Former Chairman All Pakistan Gem Merchants and Jewellers Association Raeesuddin Shaikh said many goldsmith workshops had already closed down due to depressed sales of jewellery sets rendering many unemployed and forcing others to change their jobs. He said owing to rising cost of living, many people were using artificial jewellery sets. However, they preferred rings and bangles in pure gold.